Bitcoin ATM Operator Obtains New York BitLicense

News, Regulation | February 1, 2019 By:

Crypto ATM operator Cottonwood Vending has received regulatory approval from the New York State Department of Financial Services (NYDFS) to install bitcoin ATMs in the state.

Cottonwood Vending provides the largest bitcoin ATM network in New York. The company has a network of ATM machines where individuals can buy bitcoin as well as buy and sell bitcoin for cash.

Cottonwood is one of three companies that have obtained the BitLicense primarily to set up networks of crypto ATMs. Coinsource was the first bitcoin ATM operator to receive the license, followed by LibertyX.

““It is a monumental personal achievement of mine, and also acknowledges all the hard work and tireless efforts of my support & compliance staff over the years to maintain a 24/7 safe, secure, and reliable financial service,” Cottonwood CEO and founder Aniello Zampella said in a statement. “This license will also allow us to continue to serve the historically underserved, and all New Yorkers, for many more years to come!”

The BitLicense was introduced and designed by Benjamin Lawsky, New York’s first Superintendent of Financial Services, in July 2014 to regulate cryptocurrency. Companies involved in the commercial use of crypto or engaged in related business activities operational in the state need this license to operate in New York. The law applies to all individuals irrespective of residency.

BitLicense approvals have been among the most difficult credentials to procure for crypto businesses seeking to operate in New York. To date, the NYDFS has only approved 16 companies, including BitPay, bitFlyer USA, Circle Internet Financial, Coinbase, Coinsource, LibertyX, Robinhood, Genesis Global Trading, Moon Inc., NYDIG Trust, payment processing company Square, Xapo, XRP II, Gemini Trust Company, Paxos and itBit Trust Company.