New York state financial regulator announces new framework for crypto coin listings

Thursday 12 December 2019 10:31 CET | News

Fraud Prevention and Online Authentication Report 2019/2020 New York State’s financial regulator has proposed a plan that would allow licensed virtual currency companies that have already received approval for coin listings to introduce new coins without additional permission.Fraud Prevention and Online Authentication Report 2019/2020

Still, New York- licensed virtual currency companies that want to offer new coins without the regulator’s preapproval would have to develop a coin-listing policy, to be approved by NYDFS, that includes processes for reviewing new coins and procedures for notifying the regulator when they are listed, according to the new plan.

Virtual currency businesses would also have to conduct risk assessments of new coins, including for cyber security risk.

The plan is part of a virtual currency framework that the New York State Department of Financial Services (NYDFS) aims to improve. New York introduced its BitLicense and initial framework in 2015, when other regulators will still sceptical of virtual currencies.

Since 2015, NYDFS granted two dozen licenses and charters to virtual currency companies. Some of those companies have asked to list new coins in addition to those that NYDFS approved in their initial applications, Reuters cited the regulator.

Companies that do not have an NYDFS-approved policy would have to obtain the regulator’s prior approval before listing coins other than those permitted by their original license.

Public comments about the proposal are due by January 27, 2020.

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Keywords: US, crypto providers, cryptocurrency, coins, tokens, cryptocurrency exchange, virtual currencies
Categories: DeFi & Crypto & Web3
Countries: United States
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DeFi & Crypto & Web3