The New York State Department of Financial Services (DFS) announced last week that it approved Coinsource, Inc.'s application for a virtual currency license. Coinsource presently operates 40 Bitcoin teller machine (BTM) kiosks in New York, allowing customers to buy and sell bitcoin for cash. DFS says its approval was based on stringent requirements related to various risk controls and consumer protections. Coinsource is the only company operating BTMs with this type of license; however, DFS previously approved more general licenses for other companies in the cryptocurrency marketplace. One licensee, Square, a payments company that recently integrated cryptocurrencies, announced on Thursday that it generated $43 million in bitcoin revenue this quarter (up $6 million).
In token news, Coinbase announced it will support BAT, tokens issued by Brave, which runs an internet browser that "pays" users in BAT to view ads. In addition, Stably, a Canadian startup, recently announced the early-access launch of StableUSD, a stablecoin issued with an equivalent unit of U.S. dollars held in escrow accounts. Tether, another stablecoin issuer (criticized by some for opacity), issued a letter earlier this month stating it had a $1.8 billion account with a Bahamas-based financial institution to back up its Tether coins. Days later, the bank issued a statement that the letter was legitimate. To help determine the best places to trade and store cryptocurrencies, the cybersecurity company Group-IB has announced its system of grading the security of various exchanges. Its methodology, which will be used to determine insurance premiums, tracks factors such as cyberattack losses, anti-money laundering (AML) policies and storage capabilities.
Outside the U.S., Binance Uganda reportedly signed up 40,000 users in the first week after it launched its cryptocurrency exchange. And Bithumb, a South Korean cryptocurrency exchange, announced a partnership with a major Asian e-commerce company that will enable customers to make purchases via the Bithumb Cache system, a password-protected payment service that allows Bithumb customers to convert their cryptocurrency funds for use as payments.
To read more about the information covered in this week's post, see the following:
- DFS GRANTS VIRTUAL CURRENCY LICENSE TO COINSOURCE, INC. – BITCOIN ATM
- Square's Bitcoin Revenue Increases by $6 Million in Q3, Profits Top $500,000
- Coinbase Adds Browser Startup Brave's Token to Pro Trading Platform
- Researchers rank cryptocurrency exchanges by how secure they are
- Binance Signs Up 40,000 Crypto Traders in Its First Week in Uganda
- South Korean Crypto Exchange Bithumb Lanches [sic] Payment Service with 'Asian Amazon' Qoo10
- Stably announces early-access launch of 1:1 USD-pegged cryptocurrency, StableUSD (USDS)
- Controversial Stablecoin Tether Confirms New Banking Partner Deltec After Weeks of Rumors
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