Stricter Rules for Crypto Listings
The New York State Department of Financial Services (NYDFS) just raised the bar for crypto companies. As of November 15, firms must now run their coin listing and delisting policies through the NYDFS for a stamp of approval. No more willy-nilly crypto antics!
What’s on the NYDFS Checklist?
The NYDFS isn’t asking for just a casual lunch meeting to approve token policies. They’re putting companies through a rigorous risk assessment that covers:
- Technological risks
- Operational risks
- Cybersecurity threats
- Market volatility
- Liquidity concerns
- Illicit activities
So, if you thought your favorite coin was risky, just wait till the NYDFS gets their hands on it!
Who’s Affected?
This new rule isn’t just a slap on the wrist for small-time operators. Big players like Circle, Gemini, Fidelity, Robinhood, and PayPal are in the crosshairs. If you thought your stablecoin was too stable to be surveyed, think again!
Deadlines and Dates Galore
Mark your calendars, folks! By December 8, 2023, affected firms must meet with the NYDFS to present their draft policies. Then, by January 31, 2024, they need to submit these policies for approval. It’s like preparing for tax season but for your coins!
Not a Crackdown, but a Guideline
NYDFS Superintendent Adrienne Harris was quick to point out: this isn’t a crackdown but rather an “innovative and data-driven approach.” The goal? To keep New Yorkers safe while ensuring that the state remains a playground for technology and crypto.
“We want to ensure that New Yorkers have a well-regulated way to access the virtual currency marketplace.” – Adrienne A. Harris
Back in February, the NYDFS flexed its muscles to identify illicit activities, so you better believe they mean business this time around. With around 690 blockchain companies in New York and 19% of New Yorkers holding crypto, the landscape is about to get a bit more regulated!
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