The New York State Department of Financial Services (NYDFS) reportedly issued one more BitLicense to a BTM operator. This time, the license was given to Cottonwood Vending LLC, which now can run business in New York.
"DFS Grants Virtual Currency License to Cottonwood Vending LLC, Continues to Advance Responsible Innovation in New York’s Fintech Industry," the Twitter post reads.
According to the news reports, Cottonwood Vending LLC became the third platform authorised by New York authorities in 2019. Aniello Zampella, Cottonwood founder and CEO, said that people can both purchase and sell bitcoin for cash via its kiosks.
The popularity of bitcoin ATMs also called BTMs has been soaring in the USA lately. Specifically, Coinstar reported in January that it would install some kiosks in some states countrywide. As a result, customers in California, Texas and Washington will soon be able to buy bitcoins at the related stores. In addition, the company targets covering more states in the long run.
For reference, the state regulator launched BitLicenses back in the mid-2014. Many representatives of the blockchain and crypto industries say that this license is a must have in order to operate in New York state. Earlier this year, the New York regulator granted BitLicense to Robinhood Crypto and LibertyX.
With a BitLicense, platforms ensure that they are sticking to the AML and anti-terrorism financing policies. Besides, the authority checks all employees as well as transactions performed at the platform over a 10-year period.