The New York State Department of Financial Services (NYDFS) has announced new, stricter guidelines for cryptocurrency companies regarding their coin listing and delisting policies. The regulations aim to enhance investor protection and align with NYDFS-established standards.
The changes were revealed on November 15 and affect 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. This news follows a call for public feedback on the proposal made by the NYDFS in September.
Under the new rules, firms cannot self-certify any tokens until they receive NYDFS approval. The policies will be evaluated against stringent risk assessment standards, taking into account technological, operational, cybersecurity, market, liquidity and illicit activity risks.
Affected companies include Circle, Gemini, Fidelity, Robinhood, and PayPal. They must meet with the NYDFS by December 8, 2023, to present their draft coin listing and delisting policies and submit them by January 31, 2024.
Superintendent of Financial Services Adrienne A. Harris emphasized that the new rule is not part of a state-wide crackdown on the cryptocurrency industry. She stated the NYDFS would adopt an “innovative and data-driven approach” to oversee coin listings, delistings, and the cryptocurrency market in general.
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