The New York DFS updates its regulation guidelines

TL;DR Breakdown

  • The New York Department of Financial Services has announced the new rules on listing various cryptocurrencies on its green list while delisting DOGE, LTC, and XRP.
  • The green list comprised 25 tokens before today’s announcement, which had been approved for listing, custody, or both.
  • The department has played a strict supervisory role during the current bear market, and as a result, a $100 million settlement was imposed on Coinbase for noncompliance earlier this year. 
  • The NYDFS is now asking the public for feedback on its new regulatory requirements on crypto firms within the USA.

Description

The New York Department of Financial Services announced the new rules on listing various cryptocurrencies on its green list. In the much-anticipated announcement, the NYDFS announced it would be delisting three tokens: DOGE, LTC, and XRP.  Tokens still on the list include Ether and Bitcoin. Through its X platform (Formely Twitter), the department announced that … Read more

The New York Department of Financial Services announced the new rules on listing various cryptocurrencies on its green list. In the much-anticipated announcement, the NYDFS announced it would be delisting three tokens: DOGE, LTC, and XRP. 

Tokens still on the list include Ether and Bitcoin. Through its X platform (Formely Twitter), the department announced that Superintendent Harris would be announcing the two-year transformational initiative to strengthen the department in leading digital assets oversight. The current proposal lists new guidance on how licensed digital firms can list various tokens.

Crypto regulation takes center stage among US regulators with the new DFS proposal

Amid Congress’ reluctance to crypto regulation, the Department of Financial Services has emerged as the leading digital asset supervisor, given its Virtual currency unit and Bitlicense program. 

Since 2015, firms operating in the Big Apple have been required to apply for a license from the DFS. Even with the many critics of the DFS’s stringent regulatory measures, the new rules illustrate the department’s measured steps in digital asset regulation.

The token green list was a mode of supervision where, under the older guideline, firms licensed by the department through the currency program could gain custodial approval and list their tokens in a system that streamlined services while maintaining the DFS supervisory role. 

Firms were still answerable to the department. When two licensed firms self-certified a specific token for either listing or custody, the token would be included on the green list, expediting the process as well as enabling the use of approved cryptocurrencies on token exchanges.

The Greenlist comprised 25 tokens before today’s announcement, which had been approved for listing or custody or both, including the now-delisted Ripple and Litecoin. Per the current guidance, the new green list will include eight tokens: Bitcoin, Ethereum, GUSD, the new PayPal token(PYUSD), GYEN, ZUSD, PAXG, and USDP. 

The green list is now updated per the new framework governing green-listed coins. In a press release on Monday, the department shared that the new guidelines reflect the DFS’ expectations on coin listing and delisting of all its regulated digital assets.

The department also added that it would be intensifying its risk assessment in token listing, heightening requirements for retail customer-facing businesses, which is a shift from its popular automated self-certification system. It added that licensed tokens must now possess a delisting policy enabling firms to stop supporting coins while at the same time mitigating the losses of the holders.

The department has played a strict supervisory role during the current bear market, and as a result, a $100 million settlement was imposed on Coinbase for noncompliance earlier this year. The department also stopped Paxos from issuing the BUSD stablecoin alongside Binance.

The DFS has acquired the respect of most in the industry, even as other regulators, such as the SEC and Congress, seem reluctant to create regulations for the volatile sector.

The NYDFS calls for feedback 

The department is now asking the public for feedback on its new regulatory requirements on crypto firms within the USA. The new proposal focuses on liquidity, legal, regulatory risks, reputation, and market. Superintendent Adrienne Harris stated in the announcement that his priority was to ensure the department keeps up with the developments in the ever-evolving financial landscape to protect investors and markets. 

He added that he had achieved this by building a team of experienced professionals dedicated to ensuring industry safeguards engaging regulators worldwide. The announcement also followed new guidelines allowing the DFS to evaluate supervisory costs from licensed firms in NewYork, guidelines which the department now seeks the public’s feedback on.

According to the new green List eToro trading platform was the newest firm to receive licensing from DFS in February. There are more than thirty firms licensed in the state of New York.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:The New York DFS updates its regulation guidelines

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年9月19日 18:35
Next 2023年9月19日 20:55

Related articles

  • Could CBDCs ruin global finance? – The reality

    TL;DR Breakdown Technological advances have historically streamlined global finance. CBDCs (Central Bank Digital Currencies) might disrupt this trend. CBDCs can redefine cross-border transactions and finance. Their rise could challenge the dominance of systems like Swift and the US dollar. Description Historically, every technological leap within capital markets has pointed towards one universal truth: progress. From speedier transactions to plummeting costs, technology has persistently nudged global finance towards efficiency. But there’s a shadow looming on the horizon, a potential game-changer that may not sing the same tune of harmony and integration. Enter Central Bank Digital Currencies, … Read more Historically, every technological leap within capital markets has pointed towards one universal truth: progress. From speedier transactions to plummeting costs, technology has persistently nudged global finance towards efficiency. But there’s a shadow looming on the horizon, a potential game-changer that may not sing the same tune of harmony and integration. Enter Central Bank Digital Currencies, or CBDCs for short. A tide against the current Past technological introductions into the finance space have mostly streamlined processes. But CBDCs, although still in their infancy,…

    Article 2023年8月9日
  • China central bank to cut reserve ratio for foreign exchange deposits 

    TL;DR Breakdown China’s central bank plans to reduce mandatory foreign currency reserves amid a 5% decline in the renminbi against the US dollar in 2023. China policymakers have accelerated the introduction of new measures to bolster the country’s currency and economy, focusing on the property sector. The People’s Bank of China will reduce banks’ foreign exchange reserve requirement from 6% to 4%, effective September 15. Description China’s central bank plans to reduce the mandatory foreign currency reserves held by financial institutions, which reflects their commitment to bolster the weakening renminbi. The currency has declined by over 5% against the US dollar this year, mainly due to concerns surrounding China’s economic recovery, which has been sluggish since they lifted COVID-19 restrictions at … Read more China’s central bank plans to reduce the mandatory foreign currency reserves held by financial institutions, which reflects their commitment to bolster the weakening renminbi. The currency has declined by over 5% against the US dollar this year, mainly due to concerns surrounding China’s economic recovery, which has been sluggish since they lifted COVID-19 restrictions at the…

    Article 2023年9月1日
  • MakerDAO co-founder proposes a Solana fork for NewChain development

    TL;DR Breakdown Rune Christensen, co-founder of MakerDAO, has proposed using a fork of Solana’s codebase to develop MakerDAO’s upcoming native chain, NewChain, as part of its “Endgame” upgrade. The proposal cites Solana’s technical quality, resilience, and successful past forks as key reasons for considering it over Ethereum, MakerDAO’s current platform. If the community approves the proposal, it could mark a significant strategic shift for MakerDAO and potentially impact the broader DeFi ecosystem Description Rune Christensen, the co-founder of MakerDAO, proposed a significant shift in the project’s technological foundation. Christensen suggested that MakerDAO’s upcoming native chain, known as “NewChain,” should be developed using a fork of Solana’s codebase rather than the Ethereum Virtual Machine (EVM). This proposal comes despite MakerDAO’s long-standing association with Ethereum. The rationale behind the proposal … Read more Rune Christensen, the co-founder of MakerDAO, proposed a significant shift in the project’s technological foundation. Christensen suggested that MakerDAO’s upcoming native chain, known as “NewChain,” should be developed using a fork of Solana’s codebase rather than the Ethereum Virtual Machine (EVM). This proposal comes despite MakerDAO’s long-standing association with…

    Article 2023年9月3日
  • The crypto revolution in the Philippines is embracing Blockchain for financial inclusion and empowerment

    TL;DR Breakdown According to the Blockchain Council of the Philippines President Donald Lim, blockchain and Web3 projects have an “opportunity to flourish” in the Philippines. Axie Infinity, a play-to-earn (P2E) blockchain game, shot to fame in the Philippines in 2021. Clear laws boost confidence in blockchain technology’s non-digital applications. Scams and the digital gap are challenges, but technology will advance. Description The Philippines has joined the rest of Asia in crypto adoption. Cryptocurrencies have entirely changed how we think about money and how traditional financial systems operate. The Philippines has established itself as a prospective player in the crypto industry, and the Blockchain Council there has been instrumental in promoting the uptake and comprehension of these … Read more The Philippines has joined the rest of Asia in crypto adoption. Cryptocurrencies have entirely changed how we think about money and how traditional financial systems operate. The Philippines has established itself as a prospective player in the crypto industry, and the Blockchain Council there has been instrumental in promoting the uptake and comprehension of these virtual currencies. The executive director of…

    Article 2023年7月18日
  • Former Mt. Gox CEO recalls his time behind bars as FTX CEO’s plea for release denied

    TL;DR Breakdown Mark Karpelès, the former CEO of the now-defunct cryptocurrency exchange Mt. Gox, has shared his perspective on the recent SBF plea. After more than four years of legal battles, Karpelès attributed his successful defense to the “little calculator” and the diligent work of his legal team.  During his incarceration, Karpelès had limited access to technology and computing resources.  Description Mark Karpelès, the former CEO of the now-defunct cryptocurrency exchange Mt. Gox, has shared his perspective on the recent plea by former FTX CEO Sam Bankman-Fried for release from prison due to poor internet access. Karpelès, who faced his own legal battles in the past, expressed little sympathy for Bankman-Fried’s situation. In a September 13 … Read more Mark Karpelès, the former CEO of the now-defunct cryptocurrency exchange Mt. Gox, has shared his perspective on the recent plea by former FTX CEO Sam Bankman-Fried for release from prison due to poor internet access. Karpelès, who faced his own legal battles in the past, expressed little sympathy for Bankman-Fried’s situation. In a September 13 post on social media platform X…

    Article 2023年9月14日
TOP