U.S.-based cryptocurrency ATM operator Cottonwood Vending has been granted regulatory approval to operate in the state of New York. As such, Cottonwood has become the second cryptocurrency ATM operator to receive a Bitlicense by the New York State Department of Financial Services (NYDFS).
Cottonwood Granted Virtual Currency License by New York Regulator
On Jan. 31, the NYDFS announced that it had granted a Virtual Currency License to Cottonwood Vending, tweeting that the company is advancing “responsible innovation” in New York’s fintech sector.
The licensing makes Cottonwood the second cryptocurrency ATM operator to receive regulatory approval in New York, and the 21st cryptocurrency project to receive the so-called Bitlicense.
The Virtual Currency License will allow Cottonwood to operate as a legitimate money transmitter and digital currency exchange. To sustain the license, Cottonwood will be required to demonstrate that robust anti-money laundering and cyber securities processes are in place, and maintain transaction records for 10 years.
Cottonwood operates the largest cryptocurrency ATM network in New York, with almost 100 machines currently in place. The company generated $35 million in revenue during 2018.
In November 2018, the world’s largest cryptocurrency ATM operator, Coinsource, became the first crypto ATM operator to receive a Virtual Currency License from New York.
Number of Operational Cryptocurrency ATMs Exceeds 4,000 Worldwide
Despite the bearish market trend, the number of cryptocurrency ATMs in operation has continued to increase in recent months. Last week, Atlanta-based Lux Vending announced that it had deployed 30 machines in the Chicago area since the start of 2019.