The NYDFS is notorious for its white-knuckle grip on BitLicenses. After granting its third license in a week, is it beginning to ease up?

Today, January 31, the New York Department of Financial Services (NYDFS) announced it has granted a virtual currency license to Cottonwood Vending LLC, granting the company the right to install cryptocurrency ATMs in the state.

The license – also known as a BitLicense – allows companies to provide services related to digital currency in New York and is notoriously difficult to obtain. In October 2017, a lawsuit was brought before the New York State Supreme Court that claimed the NYDFS did not have the authority to regulate cryptocurrency, arguing that virtual currency is not a financial product or service. The lawsuit was dismissed this year, and the NYDFS continues to regulate the use of crypto within the state.

Cottonwood Vending is one of three companies, the others being Coinsource and LibertyX, that have obtained the license primarily to set up networks of ATMs that offer customers the chance to buy virtual currency. The scope of the BitLicense extends beyond far beyond this one specific application, however.

LibertyX earned its BitLicense just a few days ago, along with Robinhood, which operates an app for trading in crypto.

Author: Nathan Graham
Image Credit

Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

Don’t forget to follow us on Twitter for all our Crypto, Financial & Technology related tweets.