New York Department of Financial Services (NY DFS) announced that it’s approved the application of Coinsource for a virtual currency license. Coinsource owns and operates touchscreen kiosks, which allow customers to buy bitcoin with, or sell bitcoin for, fiat currency in the form of cash. Coinsource is the first NY DFS virtual currency licensee to operate Bitcoin Teller Machines (BTM).
“Today’s approval is a further step in implementing strong regulatory safeguards and effective risk-based controls while encouraging the responsible growth of financial innovation,” said NY DFS superintendent Maria Vullo.
NY DFS has responded to innovations by licensing technology-based money transmitters under New York’s money transmitter law; online lenders under New York’s banking law; and virtual currency exchanges under New York’s financial services law. To date, NY DFS has approved twelve charters or licenses for companies in the virtual currency marketplace.