New York Awards First-Ever BitLicense to Bitcoin ATM Company

Bitcoin teller machine operator Coinsource has just become the 12th crypto company to receive a license from the New York State Department of Financial Services.

The firm announced approval of the so-called BitLicense on Thursday, with the firm's general counsel Arnold Spencer noting that it was the first granted to a bitcoin ATM provider to date.

The company already has 40 BTMs in the state, having been operating under a provisional license pending full approval.

During the evaluation period, Coinsource grew from being an unaudited firm with three employees and a handful of BTMs to being fully audited and growing to more than 20 employees and over 200 machines.

Where a customer would have to send a crypto exchange bank details and other proof of identification, Coinsource only needs a driver's license, a selfie and a cellphone number.

Coinsource also makes it easier for unbanked individuals to access cryptocurrencies, Spencer said, as they do not need to possess a bank account to purchase bitcoin and can pay with cash.

At present, Coinsource customers can only buy or sell bitcoin through the BTMs - they can't actually send funds to other wallets yet.

The company currently has money transmission licenses in 18 states, with pending licenses in another 15.

Of these, Puerto Rico is likely to happen first, with the company already having a money transmitting license for the territory.

The addition of cryptocurrencies other than bitcoin across all the firm's machines is also on the cards in the "Near future," but "That's contingent, of course, on regulatory approval," he said.