New Yorkers finally have a brand-new way to get their hands on Bitcoin. Cottonwood Vending LLC has successfully secured a prestigious BitLicense, meaning it can now operate with total freedom in the state of New York. With more than 50 Bitcoin ATMs scattered around New York – ranging from Medford in the east to Newark in the west. This huge collection of Bitcoin ATMs is giving New Yorkers a quick, easy, and stress-free way to get their hands on Bitcoin as they navigate through the state.
BitLicense Changing the Game
The New York State Department of Financial Services (NYDFS) has created the BitLicense to regulate crypto activity in the state. Any firm wishing to operate in the crypto industry with clients residing in New York is required by state legislature to obtain this special license. It essentially is the state government’s rubber stamp of approval that says “this company is safe and not a scam.” New York was the first state to introduce its own legislature and licensing for crypto firms, and the BitLicense has quickly become the gold standard for regulation in the country.
BitPay Hanging on to its BitLicense
Back in July, BitPay was awarded the eighth BitLicense in New York state. This license helped to cement BitPay’s status as one of the biggest and most popular crypto payment apps in the world. However, towards the end of 2018 a huge bug was found in BitPay’s app. The bug created a backdoor and potentially exposed the private keys to wallets created within the app. BitPay quickly issued a fix for the bug, but app users and merchants were forced to create a new wallet and transfer all funds across – something that merchants might not have the technical ability to do.
The NYDFS completely missed this app-crushing bug that put tens of thousands of crypto users at risk, and hasn’t reprimanded BitPay in any way since the bug was exposed. Thankfully, the bug wasn’t exploited, and this is most likely the reason the NYDFS hasn’t temporarily revoked BitPay’s license.
Exchanges Blocking New York IPs
Scores of crypto exchanges have been forced to block IPs that are based in New York. This is in an attempt to keep the NYDFS off their backs, as most of these exchanges don’t have a BitLicense. The penalties for operating in New York without this license are extortionate, so blocking the IPs of New York-based crypto traders quickly becomes the better choice financially. Until these exchanges secure a BitLicense, New Yorkers have access to a limited range of crypto exchanges – unless they use a VPN or head out of state to trade cryptos.
Cottonwood’s BitLicense is a total game changer, as it gives New Yorkers a super quick and efficient way to get their hands on crypto. Users of its ATMs simply feed the machine cash and scan a QR code to receive their fresh crypto – no need to wait weeks for deposits to clear on a crypto exchange. With the limited range of crypto exchanges operating in New York, Cottonwood’s crypto ATMs will prove a valuable addition to the New York crypto scene.
