Coinsource, the ATM Bitcoin (BTM) machine operator, has just become the 12th encryption company to be licensed by the New York Department of Financial Services (NYDFS).
The company announced the adoption of the so-called BitLicense on Thursday, and Arnold Spencer's general advisor, Arnold Spencer, said it was the first one to be granted to a bitcoins provider for ATMs to date. The company already has 40 BTMs in the state, operating under a temporary license pending full approval.
In a statement, NYDFS inspector Maria Vullo confirmed the news and said authorization was "a further step in the implementation of sound regulatory safeguards and effective controls based on risk, responsible development of financial innovation."
Spencer told Criptomonedaeico that "downloading BitLicense" is a validation of our business model [and] The compliance model. "
"It was a long and complicated process. The original application was [in 2015, and] Since then, what we've seen is great care on behalf of NYDFS, which really leads us to explain and, in some cases, to improve our policies and procedures. "
These ranged from having a business continuity plan for cyber security security measures, said Spencer. During the assessment period, Coinsource passed the company's independence with three employees and a handful of BTM that was fully tested and increased to more than 20 employees and more than 200 machines.
"We had an increase of 500 percent for three consecutive years in terms of machines and we had a comparable increase in revenue until the spring of 2018 when it slowed down significantly," he said.
Compared to traditional stock exchanges, the BTM of the company is convenient and offer direct peer transactions, Spencer said, adding: "We open and execute our account in real time."
The speed of the machines comes from a proprietary system that Coinsource developed to carry out the controls to get to know its customer. When a customer has to send the data from a cryptographic exchange bank and another identification test, Coinsource only needs a driving license, self-knowledge and mobile phone number.
Spinser also makes it easy for people who do not have access to encrypted files because they do not need a bank account to buy bitcoins and can pay in cash.
Currently, Coinsource customers can only buy or sell bitcoins via BTM. They can not even send money to other purses.
Spencer explained that this is from design, as allowing this would facilitate money transfer, so "you must have a money transfer license in both countries where the transaction starts and where the transaction ends.
However, the company now has money transfer licenses in 18 states with open licenses to another 15. Spencer expects Coinsource to be licensed in the 50 countries by the following year.
"At that time, we could have people put cash on the machines and carry the bitcoin into a third-party wallet if both customers are registered," he said.
Outside the US UU, Coinsource plans to expand its operations in Japan, South Africa and Puerto Rico.
Of these, Puerto Rico is likely to happen first, since the company is already licensed to transfer money to the ground.
"We had preliminary talks with the regulatory authorities in Japan to use it as a springboard for Asia and we had initial talks with bankers and regulators in South Africa, but this is probably the most remote in terms of growth," Spencer said.
In addition, with incorporation in Argentina, Coinsource already has a basis for the expansion of Latin America and South America.
Adding cryptoscopes other than Bitcoin to all of the company's engines is also at stake in the "near future", but "this depends of course on the adoption of the regulations," he said.
Picture of Bitcoin ATM by Coinsource
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