Bitcoin ATM Operator to Get NY's BitLicense

This is the first time BitLicense was issued to the operator of Bitcoin ATMs
02 November 2018   817

New York State Department of Financial Services (NYDFS) has issued the 12th BitLicense. It was granted to Texas-based Coinsource. This is reported by CoinDesk.

Coinsource is a Bitcoin ATM operator and already has 40 terminals in New York, having worked until today under a pre-license.

Coinsource General Counsel Arnold Spencer noted that this is the first time BitLicense was issued to the operator of Bitcoin ATMs, adding that its receipt indicates the correctness of the company's business model and compliance with all regulatory and legal requirements.

It's been a long, involved process. The initial application was [in 2015, and] since then what we've seen is a great deal of diligence on NYDFS' part, really pushing us to both explain and in some cases improve our policies and procedures.
 

Arnold Spencer

General Counsel, Coinsource

During this time, Coinsource has gone from a company with three employees and several ATMs to more than 20 employees and over 200 cars. Accounts of the company were also subjected to a full audit .

The company notes the fast operation of its ATMs through a proprietary system for user verification.

Currently, Coinsource customers can only buy and sell bitcoins, but cannot send them to other addresses. However, having a remittance license in 18 states, the company hopes that next year it will receive similar licenses in all other states.

At that point in time, we'd be in a position to have people deposit cash into machines and transfer bitcoin into a third-party wallet, provided both customers were registered.
 

Arnold Spencer

General Counsel, Coinsource

Coinsource plans to enter the markets of Japan, South Africa and Puerto Rico, and the latter is likely to be the first, since the company also has a license there. In addition, it is planned to add support for other cryptocurrencies. 

Lawyer to Share His Thoughts on ETF Approval

According to the number of his observations, Jake Chervinsky assesses the probability of postponement at 75%, failure - at 24.9% and 0.1% for approval 
20 May 2019   99

The US Securities and Exchange Commission (SEC) last week extended the deadline for consideration of an application to launch Bitcoin-ETF of Bitwise. This week, the regulator will have to make another decision on Bitcoin-ETF - by VanEck / SolidX. According to lawyer Jake Chervinsky, the future decision will be made in “unusual” circumstances.

SEC had to say its word in connection with the application of Bitwise by last Thursday, and the deadline for VanEck falls on this Tuesday. As noted by Chervinsky, in previous similar cases, the SEC combined solutions for different ETFs and published them on the same day. For example, in March, a delay for ETF Bitwise and VanEck was announced on the same day. Last year, the SEC simultaneously issued three waivers for different ETFs, although their deadlines were separated by weeks, while the Bitwise and VanEck deadlines only 5 days apart.

Based on these observations, Chervinsky concludes that this week’s ETF VanEck decision may be different from the next extension. However, according to the lawyer, community members should not hope too much for a positive outcome.

First, I'd be shocked if the SEC approved the first ever bitcoin ETF after six years of denials without taking all the time allowed by law. Moving slowly makes the SEC appear thoughtful & thorough.
 

Jake Chervinsky

Lawyer

In addition, the current market situation is not conducive to ETF approval. Bitcoin has been volatile lately, and investigations related to fraud and manipulation, for example against Bitfinex, are only gaining momentum. Finding factors that would push the SEC to a positive decision in such conditions is not easy.

The third and most important thing: in the last decision on ETF Bitwise, the reasons are mentioned in excess, because of which it is impossible to count on approval in the near future. These are questions about the nature of the Bitcoin market, and its vulnerability to manipulation, and about fake trading volumes.

If the SEC thinks all of these topics are grounds for denying Bitwise, then it certainly must view them as grounds for denying VanEck too. As a result, if VanEck were to have any chance of approval, the SEC would need to delay & ask all these same questions to them as well.
 

Jake Chervinsky

Lawyer

He also does not exclude the possibility that SEC employees might simply not have time to prepare a solution for ETF VanEck last week. Thus, Chervinsky assesses the probability of postponement at 75%, failure - at 24.9%, approval - at 0.1%.