Category Archives: BitLicense

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Coinsource is First Bitcoin ATM Operator with New York Bitlicense

Coinsource, a Texas-based firm with 192 Bitcoin ATMs across the United States, has become the first Bitcoin ATM operator to receive the New York Bitlicense. The company had previously been operating 40 Bitcoin ATMs under a provisional license in New York City, Westchester and Long Island.

Genesis Coin also operates numerous Bitcoin ATMs in New York but is still awaiting approval from the New York Department of Financial Services.

The CEO of Coinsource, Sheffield Clark, said, “Coinsource is the first and only company that operates BTMs [Bitcoin ATMs] to receive a New York virtual currency license. 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 license 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. We are extremely proud to be the only BTM operator holding a New York virtual currency license.”

The New York Bitlicense is difficult to obtain and has been controversial since it was implemented in August 2015. Any individual or organization that buys or sells cryptocurrency as a customer business, performs exchange services, controls or issues a cryptocurrency, or stores cryptocurrency on behalf of others is breaking the law unless they have the Bitlicense.

For a period of time, this caused Bitcoin trading in New York to become illegal and to this day, Bitcoin dealing is illegal in New York. In 2017, that problem was alleviated when Coinbase got the Bitlicense. At this time, only 12 companies have received charters or Bitlicenses to operate in New York, including Circle, Ripple, bitFlyer, Coinbase, Genesis Global Trading, BitPay, Square, and Coinsource. Essentially, only the wealthiest and most reputable companies have been able to obtain the Bitlicense. Smaller companies and individuals have not had success applying for the same rights to operate cryptocurrency businesses in New York.

Coinsource’s Bitlicense can be revoked at any time if owners do not follow strict anti-money laundering (AML) protocols, take active steps to prevent the Bitcoin they sell from being used for illegal activity or market manipulation, allow the New York Department of Financial Services to fully monitor their business activities, and properly protect consumers and resolve all customer complaints.

 

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North America: Crypto and Blockchain News Roundup, 18th to 24th May 2018

North America

Welcome to our weekly roundup of all important blockchain and cryptocurrency news from around the world. Follow the latest developments in the cryptocurrency space continent by continent, country by country.

United States

Department of Justice opens investigations into Bitcoin price manipulations: The US Department of Justice has launched a criminal investigation into the currency manipulation of Bitcoin and other cryptocurrencies.

The DOJ’s notable concern was that the volatility of the market comes with a suspected potential for investors and traders to influence price in their favor. In addition to price manipulation, DOJ is also looking at fraudulent activity due to lack of regulation.

Former Obama advisor attacked with anti-Bitcoin adverts: Ex-Obama advisor Brian Forde is being attacked for accepting donations in Bitcoin by Dave Min, a rival Democrat competing for a seat in the House of Representatives. The move comes despite the Federal Election Commission ruling that allowed donations to be received in Bitcoin.

The ad targeted Forde for being associated with hackers and malicious activities. In response, Forde said:

“These comments about my supporters are sensationalist, wildly inaccurate, and in line with my opponent’s lack of understanding of the technology… If they were speculating, they wouldn’t have donated to my campaign in Bitcoin. They didn’t HODL, they donated to my campaign in Bitcoin because they believe in the technology.”

Bitcoin Pizza transaction now worth $80 million: The Laszlo Hanyecz story is a legend in Bitcoin world as the person purchased two large pizzas in 2010 with BTC 10,000. Now, after eight years, the Bitcoins are worth USD 80 million and increasing every year.

The legendary story is seen as a missed opportunity for HODL and the first instance in which a major company accepted payment in Bitcoin. Hanyecz had mined the Bitcoins on his personal computer. On 23 May or Bitcoin Pizza Day, the crypto world looks back at how far it has come from BTC 10,000 for two large pizza eras.

Walmart integrating blockchain to Help with Sales: American retail giant Walmart has filed a patent for an application with the US Patent and Trademark Office for a sales platform that uses blockchain technology. The platform was designed by Donald R High, Michael D Atchley, and Chandrashekar Natarajan.

This is a big milestone for the future development of blockchain startups as Walmart is one of the biggest companies in the world with 11,700 stores in 28 countries. The application allows users to re-sell products from Walmart using blockchain as proof of authenticity.

Federal Trade Commission holds workshop for ICO Scams: The US Federal Trade Commission (FTC) will host a cryptocurrency workshop to address the considerable challenges that ICOs pose for investor security because of the possibility of scams. The conference called Decrypting Cryptocurrency Scams will comprise law enforcement, research organizations and consumer groups in the space.

The conference will allow the FTC to make new protections for consumers in the future by getting their feedback.

Warren Buffet taunted for his anti-Bitcoin views: Warren Buffet’s anti-Bitcoin views are universally disliked in the cryptocurrency space and Genesis Mining, a mining company purchased a billboard sign right outside his office to taunt him on his views on Bitcoin.

It reads: “Warren: you said you were wrong about Google and Amazon. Maybe you’re wrong about Bitcoin?”

Buffet’s dislike for new tech is obvious but he is the third richest man in the world due to his successful investments in conventional enterprises including banking and stocks.

Only 5 companies holding BitLicense in New York: New York’s notorious BitLicense has resulted in only five cryptocurrency exchanges operating in the city. The grand total only got to five recently when the New York Department of Financial Services gave a new license to Genesis Global Trading Inc.

Stringent BitLicense policies include AML, KYC, anti-fraud and cyber security measures but it is widely seen as a roadblock for further development of cryptocurrencies.

Canada

Unlicensed crypto trader jailed: An unlicensed Canadian crypto trader was jailed in the US after admitting undercover federal agents that he was trading in Bitcoin.

Louis Ong, a trader from Vancouver has received a 20-day sentence in the US after running an unlicensed cryptocurrency trading platform. Ong also had to forfeit over USD 1.1 million worth of Bitcoin to the investigators and was given three years of supervised release.

Ong claims that it wasn’t his intention to break the law and most of the trading he did was on legal channels.

Sweeping operation launched by US and Canada: US and Canadian governments launched investigations into 70 suspect ICOs and cryptocurrency scams in a wide-ranging operation called ‘Crypto Sweep’.

The operation by the combined North American Securities Administrators Association (NASAA) was termed only as “the tip of the iceberg” by the association by the president Joseph Borg.

Marshall Islands

Government breaks away from US Dollar and launches crypto: The Marshall Islands are looking to break away from the US Dollar and launch their own cryptocurrency called Sovereign.

The tiny Pacific nation is in free association with the US but is now looking for greater economic independence. The government has already signed the move into a new law.

 

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