Coinsource, an operator of bitcoin ATMs, has received a license to work in the state of New York. This is a significant event for the crypto community, as this is the first time that BitLicense has been issued to the crypto ATM operator. Coinsource General Counsel Arnold Spencer noted that license receipt indicates the correctness of the company's business model and compliance with all the regulatory and legal requirements. In total, this is the 12th BitLicense for crypto companies.
We would like to sincerely thank the state of New York and the New York Department of Financial Services (@NYDFS) for granting us the first Virtual Currency License to a #Bitcoin ATM operator. pic.twitter.com/VgGNBALFOB
— Coinsource (@Coin_Source) November 1, 2018
Coinsource manages the largest network of crypto ATMs in the United States. Only in the state of New York there 40 machines installed with which any individual can buy or sell cryptocurrencies. The total amount of Coinsource equipment is 200 machines located in 19 states.
An application for the license from Coinsource was received in 2015. Until now, the organization has been granted only temporary permission. New York State's Department of Financial Services (NYDFS) carefully studied the company's activities, forcing them to explain and in some cases improve policies and procedures, Coinsource representatives said. They were also subjected to a full audit account of the company.
Currently, Coinsource customers can only buy and sell bitcoins, but cannot send them to other addresses. However, in the future, the company intends to offer users the ability to load cash into ATMs and transfer bitcoins to the third-party wallets. Getting BitLicense, in turn, will increase the confidence in cryptocurrency on the part of users.
Coinsource plans to enter the markets of Japan and South Africa. But Puerto Rico is likely to be the first on this list, as the company also has a license to make money transfers there. In addition, it is planned to expand to the countries of South America and add support for other cryptocurrencies.
And these expansion plans look very real, given that the number of crypto ATMs in the world is constantly growing. In September, a research firm MarketsandMarkets published the results of a cryptocurrency ATM market study. According to the researchers, this segment will grow nearly nine times in the next five years. The average market growth will be 54.7% annually and by 2023 will reach $144.5 million.
According to Coinatmradar, there are currently 3,940 Bitcoin-ATMs in the world. On average, four new cryptocurrency devices are being installed every day. According to experts, last year the volume of the Bitcoin-ATM market amounted to $6.8 million, and in 2018 it will grow to $16.3 million.
Currently, North America is the leader in the number of Bitcoin ATMs - 73.07% of all devices are installed in the USA and Canada. Researchers from MarketsandMarkets believe that this region will retain leadership in the future, with absolute dominance remaining for the United States.
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