New York state’s Department of Financial Services has issued its first license to a Bitcoin ATM operator. This will enable residents to get bitcoin or sell them for cash at kiosks that look like ATMs using their smartphones. The license has been awarded to Coinsource, the bitcoin ATM operator that already has around 40 kiosks up and running in the state with a provisional license.
Coinsource’s kiosks are currently spread throughout New York City, Westchester, and Nassau Counties. The kiosks allow users to insert cash and purchase bitcoin which can then be stored on their mobile wallet. They can also use these machines to sell bitcoin for cash by simply scanning their mobile wallet at the kiosk.
The company was founded in 2015 and has been deploying these kiosks in across the United States. It currently has more than 200 machines up and running in some 19 states. It also has machines in the District of Columbia. The initial application for this license was filed in 2015 and following a great deal of diligence on the NYDFS’ part, it has now been awarded a full license to operate its bitcoin ATMs in the state.
It says that most customers using the kiosks rely on them as an alternative to online exchanges which not only require more technical knowledge but also have high fees, transaction delays, and limited customer service.