New York Regulator Seeks Tougher Norms For Adding, De-Listing Crypto Coins
Licensees in the state will have to set out technology, market and regulatory risks for listed cryptocurrencies under the state’s BitLicense regime....
- The New York Department of Financial Services (NYDFS) is proposing tougher restrictions on crypto coin listings, especially for those targeting retail clients.
- Licensees would need to assess legal, reputational, and market risks of new coins and provide a plan for de-listing tokens.
- NYDFS Superintendent Adrienne Harris emphasizes the need to protect consumers and markets, citing the department's regulatory capabilities and fines imposed on virtual currency companies.
- In April, the regulator outlined the analysis of crypto firms for money laundering and cybersecurity compliance.
- The regulator has also updated its list of greenlisted coins, including bitcoin, ether, and stablecoins issued by PayPal and Gemini.
- While some appreciate the regulatory clarity, others, like Kraken, have protested and withdrawn from New York.
The proposed updated guidelines by the NYDFS aim to impose stricter regulations on crypto coin listings, particularly for retail clients. While some may appreciate the regulatory clarity, others have protested and withdrawn from New York. Overall, the sentiment is mixed.