The post NYDFS Implements New Regulatory Guidance for Listing and De-listing Crypto appeared first on Coinpedia Fintech News
The New York State Department of Financial Services (NYDFS) has introduced stricter guidelines for crypto firms regarding the listing and delisting digital currencies. This development, announced on November 15, signals a proactive step by the NYDFS to align crypto operations within a more rigorous regulatory framework.
The newly unveiled restrictions require cryptocurrency companies to submit their policies for listing and delisting coins for approval by the NYDFS. These policies will be scrutinized against enhanced risk assessment standards, encompassing technological, operational, cybersecurity, market, liquidity, and risks related to illicit activities. The NYDFS emphasizes transparency and advanced notice in token delistings to maintain a stable and reliable market environment for investors.
Highlights of the Guidelines
- Enhanced Coin-Listing and Delisting Requirements: Emphasis on risk assessment for retail-focused businesses; mandates approval for coin-delisting policies.
- VOLT Initiative Expansion: Adds 60+ experts for better oversight; establishes new policies and procedures for virtual currency growth.
- Proactive Virtual Currency Regulation: Eight regulatory guidances issued; over $132 million in penalties against crypto companies; enforced remediation for misconduct.
- Data-Driven Policy Approach: Guidance based on extensive research and consultations, adapting to evolving market risks.
Compliance Requirements for Crypto Firms
Cryptocurrency entities operating under the New York Codes, Rules, and Regulation, or as limited purpose trust companies, must adhere to these guidelines. This includes high-profile firms like Circle, Gemini, Fidelity, Robinhood, and PayPal. These entities must meet with the NYDFS by December 8, 2023, to discuss their draft policies and submit them by January 31, 2024.
Superintendent Harris’s Perspective
Adrienne A. Harris, the Superintendent of Financial Services, highlights that the new rule is not a crackdown on the cryptocurrency industry but a stride toward “innovative and data-driven” regulation.
“This guidance continues the Department’s commitment to an innovative and data-driven approach to virtual currency oversight, keeping pace with industry developments. DFS is consistently at the forefront of virtual currency regulation, translating years of knowledge and experience into timely and relevant guidance which protects consumers and markets.” – said Superintendent Harris.
Impact on the Cryptocurrency Ecosystem in New York
New York is a significant hub for blockchain-based companies, with about 690 entities based in the state and approximately 19% of New Yorkers owning cryptocurrency. The NYDFS’s initiative represents a critical juncture in the evolution of cryptocurrency regulation.