The New York State Department of Financial Services (DFS) took a major step Monday in finalizing how it will oversee crypto companies registered with it. While the new set of crypto regulations only control 20 foreign companies with the Bit license, successful implementation of these rules could prove huge for the broader digital asset market. Amid a series of enforcement actions against crypto market participants in the US, the news from the New York regulator comes as a positive development.
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New York New Crypto Supervision Rules
In an official statement, Adrienne A. Harris, Superintendent of Financial Services at the NYDFS, said they have passed a final regulation outlining how companies with Bitlicense will be assessed for the cost of their oversight and investigation. This is an important development towards the ministry’s goal of treating crypto market companies on an equal footing with banks and traditional financial institutions. The new rule allows the department to collect regulatory fees from licensed crypto companies, similar to other licensees regulated by DFS. While this new rule only affects a handful of companies, it could be an ideal blueprint for other state regulators to adopt in the future.
“This regulation provides the department with additional tools and resources to regulate the virtual currency industry now and in the future as innovators create new products and use cases for digital assets.”
The statement added that the scrutiny of the crypto market includes strict standards of capitalization, cybersecurity and anti-money laundering protocols. As part of the regulatory finalization, a provision will be made in New York’s fiscal year 2023 state budget to allow the Department to collect oversight fees.
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Anvesh reports major developments around crypto adoption and trading opportunities. He has been associated with the industry since 2016 and is now a strong advocate for decentralized technologies. Anvesh is currently based in India. Contact him at [email protected].
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.
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