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 18 Sep 23

tl;dr

The New York Department of Financial Services (NYDFS) is proposing stricter oversight of cryptocurrency firms operating in the state, with a focus on transparency and risk management. The proposal includes standards for fraud examination, price manipulation evaluation, and new coin-listing and delis...

Max Gottlich, SA News Editor

The New York Department of Financial Services on Monday proposed strengthening its oversight of cryptocurrency-related firms regulated in the state to list and delist tokens. 

The New York financial watchdog wants such companies to be more transparent about how they list and delist coins. 

“Since joining DFS, I have made it a priority to ensure the Department’s regulatory and operational capabilities keep pace with industry developments to protect consumers and markets,” NYDFS Superintendent Adrienne Harris said in a statement.

As part of the proposal, which is open for public comment until October 20, the NYDFS seeks to require crypto firms to obtain certain standards on how they examine fraud, price manipulation, among other risks. And, to make coin offerings stronger, the firms would also be asked to develop and submit new coin-listing and delisting policies.

"In the event a listed coin is identified as presenting newly elevated risk, whether through a VC Entity’s monitoring process, a Department-identified weakness or vulnerability, or otherwise, VC Entities must be able to discontinue support of that coin in a manner that is consistent with safety and soundness and with protection of customers and the general public," the NYDFS said

The NYDFS has been a big player in U.S. crypto regulation. In April, the regulator adopted a new rule to assess costs for supervising licensed crypto firms, similar to other licensees it regulates.

A number of well-known crypto-linked firms have virtual currency licenses in New York, including crypto exchange Coinbase Global (COIN), Robinhood (HOOD), and stablecoin issuer Circle Internet Financial, according to its website.

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 22 Dec 24
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