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NYDFS plans to introduce a framework to enhance transparency in cryptocurrency-related actions, such as adding or removing cryptocurrencies from exchanges.
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The New York State Department of Financial Services (NYDFS) has strict rules for crypto companies in the state. They are now planning to introduce a framework to make cryptocurrency activities, like adding or removing cryptocurrencies on exchanges, more transparent.
NYDFS Plans Firm-Specific Crypto Listings and Delistings
The New York State Department of Financial Services (NYDFS) is set to introduce new guidelines for crypto firms concerning the evaluation and management of cryptocurrencies before listing and delisting them. The goal is to enhance transparency in the process. The NYDFS will provide specific steps and criteria for both adding and removing cryptocurrencies. These guidelines will be tailored to individual firms.
Adrienne Harris, NYDFS Superintendent, explained that these guidelines aim to make standards for crypto offerings stronger. The NYDFS identified several shortcomings in recent studies. The proposed legislation is open for public input until October 20.
Crypto companies operating in New York must submit their coin-listing and delisting policies to the NYDFS. These policies should cover aspects such as governance, risk assessment, monitoring procedures, and alignment with the company’s business model and customers.
Once approved, crypto firms can continue listing coins but must notify the NYDFS before adding new cryptocurrencies and provide details about all the cryptocurrencies they use or offer.
NYDFS’s Strict Crypto Regulations
The NYDFS has been tough on regulating the cryptocurrency market, imposing fines and taking enforcement actions against crypto firms. This strict approach created significant issues for Binance when it was instructed to cease BUSD minting in February. Notable companies like Coinbase, BitPay, and Robinhood were also fined by the NYDFS due to its stringent stance.
Adrienne Harris, head of NYDFS’ crypto unit, mentioned that the unit has grown substantially, now having around 60 staff members, almost three times its size from two years ago. The NYDFS is known for its strict cryptocurrency regulations.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.