New York financial authority issues stricter crypto listing guidelines
November 16, 2023 9:51 AM
Crypto companies' coin listing and delisting policies have to conform to a set of guidelines established by the NYDFS.
New York's financial regulator has announced stricter guidelines for companies listing and delisting cryptocurrencies in an effort to safeguard investors.
The New York State Department of Financial Services (NYDFS) released new limitations on Nov. 15, which necessitate crypto firms submit their coin listing and delisting procedures for NYDFS approval.
To safeguard investors, the NYDFS has established stricter risk assessment guidelines that the company's policies will be evaluated against. The NYDFS will evaluate the tokens' operational, cybersecurity, market, liquidity, and risk of illegal activity, among other factors.
The upcoming changes would apply to all entities conducting digital currency operations and permitted to do so under New York's codes, rules, and regulations or under the state's banking law. In September, the NYDFS asked for comments on the idea from the general public.
Until the NYDFS approves the firm's submission of their coin listing policy, the firm is not able to self-certify any tokens.
Circle, a stablecoin issuer; Gemini, a cryptocurrency exchange; Fidelity, a fund manager; Robinhood, a trading platform; and PayPal, a payments behemoth, are all subject to the new regulations.
By January 31, 2024, all concerned businesses must have met with the NYDFS to preview their proposed coin listing and delisting procedures. This meeting with the NYDFS must take place no later than December 8, 2023.
Financial Services Superintendent Adrienne A. Harris recently stated that the agency would use an "innovative and data-driven approach" to monitor exchange listings and delistings of coins, as well as the cryptocurrency market at large.
Harris emphasized that the new regulation is not part of a statewide effort to suppress the bitcoin market.
"We want to keep New York at the forefront of technological advancement and forward-thinking regulation and to make sure that New Yorkers have a safe and secure way to access the digital currency marketplace."
The New York Department of Financial Services (NYDFS) announced in February that it had improved its ability to detect criminal activity involving cryptocurrencies.
According to research by Coinbase published in August, 690 blockchain-based businesses are based in the Big Apple, and about 19 percent of New Yorkers own bitcoin.