The New York regulator proposes new requirements for the listing of coins
The New York State Department of Financial Services, the Bitlicense regulator, has published a proposed framework for licensed companies seeking to list new currencies. This is the first time that the regulator has proposed changes in its crypto regulation in five years. Among the changes, licensees may self-certify compliance with their new currencies without having to obtain prior approval from the regulator.
First regulatory changes in 5 years
The New York State Department of Financial Services (DFS) published on Wednesday “proposed guidance on the adoption or listing of virtual currencies.” “To provide clarity and regulatory efficiency, and to ensure that our approach to regulate virtual currency companies reflects the realities of an evolving market,” the DFS announced:
“We are reviewing our virtual currency regulations and how they are implemented.”
The department began regulating the crypto industry in July 2014. So far, two dozen Bitlicenses or letters of trust have been granted to crypto companies to operate in the state of New York. The regulator explained that some of its licensees have asked to list new currencies in addition to those listed in their initial applications with the DFS. The department is now seeking comments from all interested parties and the general public regarding two proposed adoption options or list of currencies that it wants to make available to licensees. Comments must be submitted before January 27, 2020.
The proposed framework
First, the DFS proposes to create a web page that lists all the currencies that it has previously approved for all licensees to list without having to obtain prior approval. The list “may be updated from time to time, provided that the currencies listed have not been subject to any modification, division or change after their inclusion on the DFS website,” the regulator detailed, adds the following:
“The currencies currently contemplated for the list include bitcoin, bitcoin cash, ether, ether classic, litecoin, ripple, standard paxos and Gemini dollar.”
Second, the regulator is proposing a framework that allows the listing policy to adapt to the specific business model of the licensee and the risk profile to create a specific listing policy for the company. The DFS clarified the following:
Upon approval, the company can self-certify the list of new currencies on a continuous basis, in accordance with the policy approved by the company, with prior notice to the department and without the need for prior approval.
DFS reiterated that licensees who do not have company listing policies approved by DFS must seek prior approval to offer coins that are not on their approved list. In addition, all licensees “must keep DFS informed, at the latest at the time of their next quarterly presentation, of all currencies that will be used or offered in connection with their virtual currency business activities.”
A licensee’s coin listing policy “should consist of sound procedures that comprehensively address all the steps involved in reviewing and approving virtual currencies in relation to the licensee’s virtual currency business activities,” DFS described. The policy must be adapted to the “specific business model of the licensee”, operations, customers and counterparties, geographies of operations, service providers and the use, purpose and specific characteristics of the currencies being considered. It must also include procedures to notify DFS of new coin listings. “
Some governments are looking for new ways for companies that are dedicated to the exchange of value, blockchain-bitcoin technology is a window towards the consolidation of new opportunities to generate wealth, it is possible with innovation and creativity to offer services to new investors. It is expected by new announcements.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.