In a move to enhance investor protection, the New York State Department of Financial Services (NYDFS) has unveiled tightened guidelines for cryptocurrency listing and delisting in the state. The new restrictions, effective from November 15, mandate crypto companies to submit their coin listing and delisting policies for NYDFS approval.
Rigorous Standards and Risk Assessment
Under the updated regulations, crypto firms must align their policies with more stringent risk assessment standards set forth by the NYDFS. These standards cover technological, operational, cybersecurity, market, liquidity, and illicit activity risks associated with the listed tokens. The NYDFS aims to ensure a comprehensive evaluation process to safeguard investors.
NEW: DFS Superintendent Adrienne A. Harris Adopts New Regulatory Guidance Regarding the Listing of Virtual Currencies
— NYDFS (@NYDFS) November 15, 2023
The changes apply to all digital currency business entities licensed under the New York Codes, Rules, and Regulation, or limited purpose trust companies under the state’s Banking Law. Major industry players including Circle, Gemini, Fidelity, Robinhood, and PayPal must comply with the new rules. Companies with existing coin listing policies cannot self-certify tokens until they receive approval from the NYDFS.
NYDFS Adopts Innovative Oversight Approach
Superintendent of Financial Services, Adrienne A. Harris, emphasizes the NYDFS‘s commitment to an “innovative and data-driven approach” in overseeing coin listings, delistings, and the broader cryptocurrency market. Harris clarifies that the regulatory measures are not part of a statewide crackdown but aim to ensure a well-regulated marketplace for New Yorkers.
All affected firms are required to meet with the NYDFS by December 8, 2023, to preview their draft coin listing and delisting policies. The finalized policies must be submitted by January 31, 2024. The initiative aligns with NYDFS’s broader strategy to remain at the forefront of technological innovation and forward-looking cryptocurrency regulation in the state.