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NYDFS Grants BitLicense to Third Bitcoin ATM Operator

coinnewsdaily by coinnewsdaily
January 31, 2019
in Business
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NYDFS Grants BitLicense to Third Bitcoin ATM Operator
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Another bitcoin ATM operator has received one of New York’s coveted BitLicenses.

Cottonwood Vending LLC was granted one of the virtual currency licenses Thursday, the New York Department of Financial Services announced on Twitter, joining a select group of fewer than 20 crypto companies to receive regulatory approval to operate within the Empire State.

The agency has been ramping up its awarding of its virtual currency licenses recently, with three awarded in January 2019 alone, compared to only one being granted each in 2015 and 2016, and two in 2017.

Coinsource was the first bitcoin ATM operator to receive the license, which was awarded in November 2017 after a three-year application process. LibertyX joined it earlier this month, announcing that it would allow individuals to purchase bitcoin using debit cards at traditional ATMs.

Automated kiosks for buying bitcoin in the U.S. are becoming increasingly popular, with money changer Coinstar announcing earlier this month that it would enable such purchases in a number of states. While at launch, customers can only purchase bitcoin at specific stores in California, Texas and Washington, however, the company plans to expand to other parts of the country going forward.

Cottonwood could not be immediately reached for comment. The company’s Twitter account claims it is the “largest [New York] bitcoin ATM network,” and that customers can both purchase or sell bitcoins through its machines.

ATM image via Shutterstock



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