The New York Department of Financial Services (NYDFS) has awarded Cottonwood Vending LLC a virtual currency license. The department made the announcement via Twitter.
According to the tweet, Cottonwood Vending, a US-based Bitcoin Core (BTC) ATMs operator, received the new license on January 31, becoming the second in its field to obtain this licensing. Cottonwood now joins a group of less than twenty crypto companies allowed to operate in New York state.
Reportedly, the BitLicense is the hardest digital license to get. NYDFS awarded only one company the license in both 2015 and 2016. In 2017, another two companies managed to receive this license. More than ten companies were awarded in 2018. 2019 has started quite well for industry players. In one month, two crypto ATM operators have been issued new licenses.
The first bitcoin ATM operator to receive this license was Coinsource. The company was awarded the BitLicense back in November 2017. Reportedly, Coinsource received the license after a three-year application process.
LibertyX was the most recent company to receive the license before Cottonwood joined the fold. In a statement about the development, the company advertised that it would allow customers to buy crypto using Debit cards at traditional ATMs.
In an email addressed to CoinDesk, Cottonwood CEO and founder Aniello Zampella explained that the public could now buy crypto using cash at any of their machines. He added that selected devices would also allow customers to sell crypto for physical money.
Zampella added:
“It is a monumental personal achievement. I also acknowledge 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. This license will also allow us to continue to serve the historically underserved, and all New Yorkers, for many more years to come!”
First enacted in August 2015, BitLicense regulations have caused an outcry from the community. Some players are unhappy with the hard and slow process businesses have to go through before getting approval. At times, companies have had to purchase digital currencies they did not intend to buy so as to get approval.
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