New York’s Financial Regulator Grants BitLicense To 3rd Bitcoin ATM Operator
The New York Department of Financial Services (NYDFS) has granted the state’s BitLicense to yet another bitcoin ATM operator, the regulator announced last Thursday.
Cottonwood Vending LLC is the latest crypto company to receive New York State’s coveted virtual currency licenses. The approval for the vendor means it joins a small group of businesses and firms that now offer crypto-related services within the Empire State.
The NYDFS began issuing its license in 2015 and has in the last few months increased the rate at which applications get approved. So far, the agency has issued three licenses in 2019, compared to just two issued between 2015 and 2016 and another two in the whole of 2017.
Aniello Zampella, the founder, and CEO of Cottonwood said that acquiring the license means that the general public can now access its machines to purchase bitcoin with cash. He added that a select number of devices are two-way, which allows users to sell their bitcoins for cash.
Zampella noted that the company now has the opportunity to continue offering services that allow users to trade bitcoin at many of its locations.
According to him, the BitLicense is “a monumental personal achievement,” but one that has come after the “hard work and tireless efforts” of the firm’s compliance staff in ensuring they offer secure and reliable financial services.
Following the approval, the firm adds another 88 bitcoin ATMs available to all New Yorkers.
Bitcoin ATM operator Coinsource was the first company to receive the BitLicense after the New York regulator approved its application last November, three years after the company applied for one.
Prior to receiving the license, Coinsource operated over 200 bitcoin ATMs in the United States, and 40 bitcoin kiosks within the state of New York.
In January, the agency approved an application by LibertyX, which announced that the public would now use debit cards to purchase bitcoin at traditional ATMs.
Automated kiosks that allow users to purchase bitcoin have increased tremendously over the years within the U.S.
The latest move involved coins-to-cash converter Coinstar, which partnered with bitcoin ATM provider Coinme to allow shoppers in selected U.S. states buy bitcoin.
At the moment, users are only able to purchase BTC at Safeway or Albertsons stores in three states- California, Washington, and Texas. However, Coinstar has revealed at launch that it would expand the service to cover most other jurisdictions within the country.
According to bitcoin ATM tracking platform Coinatmradar, there are about 420 crypto teller machines around the world. Of these, about 2577 are located in the U.S.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.