New York’s chief financial regulator has approved a Bitcoin-based ATM company to receive a controversial Bitlicense, granting them the ability to offer their services in the state.
Coinsource Granted Bitlicense From New York Department of Financial Services
Coinsource Inc., the company behind a wide-number of Bitcoin automated-teller machines across the United States, can now offer their cryptocurrency buying and selling services across the state of New York. The New York Department of Financial Services (NYDFS) granted the company approval to receive a controversial Bitlicense – a license that governs cryptocurrency-related businesses operating in the state of New York.
Coinsource’s ATM operation stretch across 18 U.S. states, and the firm is planning on expanding to all 50 states in the future as it earns additional regulatory approval. The company says its the “world’s largest Bitcoin ATM Network” and boasts about having the lowest rates, fastest speeds, and live support.
The Department of Financial Services’ approval comes after a thorough review of Coinsource’s application. NYDFS superintendent Maria Vullo said the “approval is a further step in implementing strong regulatory safeguards and effective risk-based controls while encouraging the responsible growth of financial innovation.”
Does Bitlicense Really Encourage Growth and Innovation? Crypto Companies Say No
While NYDFS is confident that Bitlicense encourages “growth” and “innovation” in the cryptocurrency industry, plenty of businesses and their executives beg to differ. Only twelve of the controversial Bitlicenses have been awarded to cryptocurrency companies in the state. However, many more than that have been forced out, and others outright avoid the state of New York due to NYDFS overextending their control and influence. A total of fifteen companies fled the state after Bitlicense was put into effect, with only a handful of the most prominent companies remaining.
The New York financial regulator has caused much uproar in the industry, and has been compared to an abusive ex by Kraken CEO Jesse Powell.
“NY is that abusive, controlling ex you broke up with 3 years ago but they keep stalking you, throwing shade on your new relationships, unable to accept that you have happily moved on and are better off without them. #getoverit,” he said in a tweet.
Powell was riled up, responding to a report published by the New York attorney general’s office that alleged that Kraken and a pair of other exchanges were operating in the state unlawfully. Kraken later released an official statement on their website suggesting that NYDFS show some “basic respect” to the young, growing industry.
