Perceived by many as the hardest license to get your hands on, Cottonwood Vending LLC has braced the storm from the NYDFS and emerged a holder of the BitLicese. BitLicense is a license issued to firms which operate a BTMs or Bitcoin ATMs kiosks which enable traders to sell and buy bitcoin straight from their phones.
Created by Benjamin Lawsky in 2014 companies which wish to join the elite group of BitLicense holders have to undergo a series of test done by the New York State Department of Financial Services (NYDFS) to ascertain if they reach NYDFS standards. To many, the exercise is long and cumbersome but to the NYDFS it’s mandatory, and there are no shortcuts. Before NYDFS approves and grants applicants licenses, the firms must fulfil the counter-terrorism financing and specific NYDFS anti-money laundering (AML) requirements in place. Apart from that, the operator must keep transactional records for ten years. For the employees, they are subjected to thorough background checks before their employer gets the BitLicense. But above all entering the New York market is a major milestone for any Bitcoin ATM operator.
For Cottonwood Vending the 31st of January 2019 will remain a day its doors were open to broaden its network and offer its services to many. The latter has Bitcoin ATMs in New York and adjacent areas.
Other Firms with BitLicense
Since 2014 only 20 firms have successfully acquired NYDFS BitLicense, but Cottonwood is the newest kid in town. The rest of the firms include Coinsource, BitPay, LibertyX, Coinbase, Ripple, Xapo, bitFlyer to mention but a few. Although the process is long, several firms were able to get their hands on a BitLicense in 2018. For now, Cottonwood joins the above operators. News of Cottonwood getting the license reached the public domain through a tweet from NYDFS. From the above BitLicense holders, many crypto enthusiasts in New York will be able to trade due to having many ATMs offering Bitcoin trading services. Through the kiosks, one can sell, buy, deposit or withdraw cash from their wallets. The ATMs make the process straightforward and easy since a simple scan synchronizes your phone to the ATM enabling the transfer of data. From the data, one can make any withdrawal or purchase right from their phone’s wallet.
As more and more operators become holders of a BitLicense, it’s enabling the spread of kiosks usage.