Monday, July 15, 2019

New York Financial Regulators License Bitcoin ATM Operator

The New York Department of Financial Services (DFS) on January 31 announced that Cottonwood Vending LLC had been licensed to operate in the state. The Bitcoin ATM operator now joins two others, Robinhood, and LibertyX which were approved earlier this month.

DFS Licenses Cottonwood Vending LLC

The New York Department of Financial Services has licensed Cottonwood Vending LLC  based on the report of the DFS on Twitter. Therefore, this places the company among 20 others in the industry that are operating in the state. Moreover, Cottonwood is the third to have received the approval of the regulators in 2019.

While commenting on the development, Aniello Zampella, Cottonwood’s CEO told a media outlet that people can opt to buy Bitcoin at its ATMs with cash. Selected ATMs in the area, can also be used to sell Bitcoin for cash. He added that the company is delighted to provide users with the opportunity to trade Bitcoin at its stalls.

Zampella also said:

This license will also allow us to continue to serve the historically underserved, and all New Yorkers, for many more years to come!

Two Other Cryptocurrency Companies Receives Approval

Before Cottonwood’s approval, Robinhood Crypto LLC, an online brokerage platform and LibertyX, a Bitcoin ATM operator were approved. In the case of Robinhood, the company allows customers to trade seven virtual currencies including, Bitcoin, Ether, and Bitcoin Cash. LibertyX, on the other hand, is reportedly the first Bitcoin ATM operator to be approved by the DFS this year.

That aside, a closer look at the previous trends shows that there has been a slight increment in Bitlicenses in comparison to 2015 and 2016. In those two years, only one crypto company was licensed, whereas two others received approval in 2017. It can be expected that more might be approved in 2019 given that this is the beginning of the year.

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Approved Cryptocurrency Companies to Adhere to Regulations

Like Robinhood Crypto LLC and LibertyX, Cottonwood will have to adhere to the regulations of the DFS. These are guidelines geared toward customer protection, and they include Antimoney Laundering and OFAC controls. These companies are also to respond to the complaints of their customers promptly.

BTCNN on January 29 informed that Chicago had received 30 new Bitcoin ATMs. Lux-vending, an Atlanta-based company is behind the installation of these machines. The company had outlined that people within the area will be able to buy and sell Bitcoin as with other assets such as Ethereum, Litecoin, and Bitcoin cash.

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Grace Joseph
Freelance Writer, Blogger, and Crypto Enthusiast. Studied Computer Science in University and Undergoing a Masters Degree Programme in Computer Engineering [email protected] [email protected]
 

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