According to Blockworks, New York State Comptroller Thomas DiNapoli has expressed concerns over the state's oversight of crypto companies, particularly in relation to the BitLicense program. Initiated by the New York Department of Financial Services (NYDFS) in June 2015, the BitLicense program aims to provide a well-regulated way for New Yorkers to access digital currencies. DiNapoli's report found limited assurance that the NYDFS is adequately performing its oversight responsibilities related to BitLicense applications and supervision.
The Comptroller's concerns stem from the risk that licenses could be granted to applicants whose financial stability has not been thoroughly verified or that, once licensed, businesses may not maintain financial or cybersecurity standards. The report also found that the cybersecurity systems of BitLicensees were not in compliance with NYDFS regulations. To address these concerns, the report suggests that the NYDFS implement an adequate follow-up process.
NYDFS Superintendent Adrienne Harris announced the VOLT initiative, which aims to improve the financial regulator's oversight of crypto companies. VOLT stands for vision, operations, leadership, and technology. The audit took place over a span of a few years, from July 2018 to July 2023. The BitLicense program, launched in 2015, grants certifications to businesses engaging in crypto activities, including storing, selling, and issuing digital assets in the state. Crypto firms can also apply for a charter under the New York Banking Law, allowing them to conduct some crypto business activities.
