Coinsource, an operator of Bitcoin Teller Machines (BTM), has secured a virtual currency licence from the New York Department of Financial Services (DFS).

The company is said to be the first of its type to receive the licence. The decision follows a review of the company’s anti-money laundering, cyber security and consumer protection policies.

Coinsource CEO Sheffield Clark said: “Coinsource is the first and only company that operates BTMs to receive a New York virtual currency licence. All New Yorkers — from the people that are unbanked to the people who own the banks — can use our kiosks in their neighborhood retail locations to buy bitcoin instantly in a convenient and familiar way.

“Now that Coinsource is a licence holder, our customers can buy and sell with confidence that Coinsource meets and exceeds the high standards set by the New York Department of Financial Services. New York represents not just a center of global innovation but also one of our largest target markets.”

Currently, Coinsource enables users in New York to buy Bitcoin with cash or sell Bitcoin for cash through 40 Bitcoin kiosks.

DFS superintendent Maria Vullo said: “Today’s approval is a further step in implementing strong regulatory safeguards and effective risk-based controls while encouraging the responsible growth of financial innovation.”

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By GlobalData

Earlier this year, NYFDS granted similar licences to BitPay, Square, Xapo, and bitFlyer.