Financial Regulators New York Grant BitLicense to Bitcoin ATM Operator

NYDFS (New York State Financial Services Department) has approved a virtual currency license, or BitLicense, for Cottonwood Vending LLC, the official tweet posted on January 31st.

Cottonwood Vending is a Bitcoin ATM (BTC) operator with terminals in and around New York. According to the tweet, issuing such licenses "continues to improve responsible innovation in the financial technology sector in New York."

Bitcoin ATMs, or BTMs, is a touchscreen kiosk that allows users to make money and buy Bitcoin, or scan their mobile wallet, sell a crib and raise money. Sales and purchases are automatically synced with mobile wallet users.

In November 2018, NYDFS approved the Bitlicense license to another BTM operator, Coinsource. In a press release, NYDFS stated that its decision followed a thorough and thorough review of Coinsource's application and subjected the company to significant regulatory requirements.

NYDFS introduced BitLicenses license in July 2014. Benjamin Lawsky, the first financial services manager in New York. The acquisition of such licenses is considered by many in the sphere of crypto-currencies and block-chain as a necessary step in the business of the state.

Companies that receive such a license are subject to certain standards for the prevention of money laundering and certain standards of terrorist financing. Other requirements include checking all employees and records of transactions must be kept for ten years.

Several companies in the cryptographic industry signed up for NYDFS BitLicenses license. In July 2018, the BitPay encrypted global payment processor was granted a BitLicense license. At that time Stephen Pair, BitPay Executive Director, said:

"New York has one of the hardest rules for companies involved in cryptocurrency and, according to BitPay, it was important to follow the approval process for obtaining a license. We believe that this difficult job will be paid because New York offers significant business opportunities for BitPay."


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