The world’s largest bitcoin ATM company has finally received official approval to operate in New York. They had previously been operating in New York almost since the company’s inception via a provisional license. Last year, they received coverage in the New Yorker and have frequently been in the news with word of new ATMs across the country. Coinsource is creeping toward 200 machines, the majority of which are two-way ATMs — meaning that users can buy and sell bitcoin through them. Coinsource ATMs support transactions from $5 to a limit of $5,000 per day.
Coinsource believes that real-world bitcoin ATMs are important for the adoption of bitcoin as a whole. According to an external spokesperson, regulations are worth the wait in that they “legitimize” things. Speaking of their BitLicense being granted, she said:
“Coinsource has been operating with a provisional license within that state, so the approval of the license does not necessarily change the service, but further legitimizes the company as a whole. Being granted an official license is a huge step towards general adoption. […] This milestone demonstrates to both other crypto companies and the general public that if you remain compliant and play by the rules, you will be rewarded.”
Coinsource CEO Sheffield Clark added in a statement:
“From the onset, our goal was to provide millions of Americans with a reliable and convenient way to buy digital currency. Bitcoin is no longer a fringe currency, and in 2018, is increasingly being adopted by the mainstream. Today, with the issuance of the virtual currency trading license to a BTM operator, the bitcoin industry takes another step toward public adoption.”
Coinsource is the first and only bitcoin ATM operator to be granted a full BitLicense. New York being the hub of finance in the United States, it presents an important opportunity to expand the userbase of bitcoin and later other cryptocurrencies as a whole.
Whether or not the regulations will have a positive or negative impact on bitcoin companies remains to be seen. Regulation, in general, can have both positive and negative impacts on innovation, but in the case of the BitLicense, it can be argued that it discourages companies from operating in cryptocurrencies rather than another type of regulation which might encourage them to do so.
The BitLicense has been an intense subject of debate and worry since it was first proposed and later implemented by the New York Department of Financial Services. Several exchanges and other bitcoin service providers no longer work in New York State as a result of the licensing scheme, which many believe opens the door for favoritism and the picking of winners, among other problems.
Featured Image from Coinsource
Last modified: March 4, 2021 3:06 PM