The New York State Department of Financial Services (DFS) took a major step forward on Monday, finalizing a set of rules to monitor crypto businesses registered with it. While the regulations only apply to around 20 companies with the Bitlicense, successful implementation of these rules could have a significant impact on the digital assets market. This news comes at a time when the US has seen a series of enforcement actions against crypto market participants, making the New York regulator’s decision a positive development.
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New York’s Latest Crypto Supervision Regulations
In an official statement, Adrienne A. Harris, Superintendent of Financial Services at the NYDFS, said that they adopted a final regulation establishing how companies holding Bitlicense will be assessed for costs of their supervision and examination. This is a major step towards the Department’s goal of treating crypto market businesses on the same level as banks and traditional financial institutions. The new rule allows the department to collect supervisory costs from licensed crypto companies, matching the fees charged to other licensees regulated by DFS. Although the rule only affects a few companies, it could serve as a perfect example for other state regulators to follow.
“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 went on to say that its scrutiny of the crypto market involves stringent standards for capitalization, cybersecurity protection, and anti-money laundering protocols. As part of finalizing the regulations, a provision has been included in the New York State Budget for the 2023 financial year to allow the Department to collect supervisory costs.
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