The New York State Department of Financial Services (NYDFS) is proposing new regulations for cryptocurrency companies in New York, addressing their listings and delistings of cryptocurrencies on their platforms.
The NYDFS requires crypto firms to create transparent decision-making criteria, involving risk assessment and ongoing cryptocurrency monitoring. Licensees are obligated to evaluate the legal, reputational, and market risks associated with any new coins. Additionally, they must provide a plan detailing the procedure for delisting a token if necessary.
Adrienne Harris, the head of NYDFS, said, We’re continuing to supervise the risk-based analysis of our entities, make sure those examinations are going well, make sure the entities are remediating in a timely manner. We will, of course, continue to bring enforcement actions where necessary.”
Cryptocurrency firms in New York must share their criteria for adding or removing cryptocurrencies as part of this proposal. Public feedback on these rules is welcome until October 20.
These regulations build on earlier 2020 rules that mandated approval for offering certain cryptocurrencies unless they were on an approved list. The new rules provide more clarity on how companies should make these inclusion or exclusion decisions.
NYDFS closely watches the crypto industry, imposing fines on firms like Coinbase and Robinhood for rule violations, with the aim of securing the safety and stability of the cryptocurrency market, and their involvement has increased in recent times.
These proposed regulations by NYDFS reflect a proactive approach to safeguarding cryptocurrency users and enhancing market transparency, addressing the evolving landscape of digital assets.
Also Read: New York Attorney General Proposes Bill to Regulate Crypto in State
