New York proposes crypto regulations, plans to charge crypto companies

Please fol­low and like us:
Pin Share

The New York State Depart­ment of Finan­cial Ser­vices (DFS) has pre­sent­ed a pro­pos­al to amend state leg­is­la­tion and charge licensed cryp­tocur­ren­cy com­pa­nies for reg­u­lat­ing them. Although it may seem strange, the DFS fre­quent­ly charges its reg­u­lat­ed non-cryp­to finan­cial orga­ni­za­tions for the costs and expens­es of keep­ing watch over them under the Finan­cial Ser­vices Law (FSL).

The ini­tia­tive is being led by DFS Super­in­ten­dent Adri­enne Har­ris, who made the announce­ment via the DFS web­site on 1 Decem­ber. The pro­pos­al is avail­able for pub­lic com­ment for the next ten days.

As the FSL did not include a pro­vi­sion for cryp­to enter­pris­es when cryp­to reg­u­la­tion was enact­ed in New York in 2015, Har­ris is essen­tial­ly aim­ing to bring vir­tu­al cur­ren­cy busi­ness­es in line with the state’s tra­di­tion­al finan­cial institutions.

What does the law bring to the table?

Har­ris not­ed that the extra funds would enable the orga­ni­za­tion to expand its cryp­to team, 

“Through licens­ing, super­vi­sion, and enforce­ment, we hold com­pa­nies to the high­est stan­dards in the world. The abil­i­ty to col­lect super­vi­so­ry costs will help the Depart­ment con­tin­ue pro­tect­ing con­sumers and ensur­ing the safe­ty and sound­ness of this industry.”

The assess­ments will only apply to cryp­tocur­ren­cy busi­ness­es with a BitLi­cense, a unique busi­ness license pro­vid­ed by NYDFS that enables enter­pris­es to oper­ate in New York. A BitLi­cense, which is noto­ri­ous­ly tough to obtain, is held by just 22 com­pa­nies, and just three have been giv­en this year.

The need for more crypto regulations

It is not unex­pect­ed that reg­u­la­tors are rush­ing to impose more cryp­to reg­u­la­tions after the cryp­to busi­ness had yet anoth­er mul­ti-bil­lion-dol­lar melt­down, this time because of the now-bank­rupt FTX, Alame­da Research, and for­mer gold­en boy Sam Bankman-Fried.

The 10-day pre-pro­pos­al com­ment peri­od will begin on Thurs­day with the pub­lish­ing of the draft rule, and a 60-day con­sul­ta­tion peri­od will fol­low the draft reg­u­la­tion pub­lished in the State Reg­is­ter. Fol­low­ing the com­ment peri­od, the NYDFS will either pub­lish a notice of the adop­tion of the reg­u­la­tion as it is now writ­ten or release a revised proposal.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *