New York State Department of Financial Services (DFS) Superintendent Adrienne A. Harris issued guidance which adopts enhanced requirements for coin-listing and delisting policies of DFS-regulated virtual currency entities, “updating the prior framework issued by the Department in 2020.”
Superintendent Harris stated:
“This guidance continues the Department’s commitment to an innovative and data-driven approach to virtual currency oversight, keeping pace with industry developments. DFS is consistently at the forefront of virtual currency regulation, translating years of knowledge and experience into timely and relevant guidance which protects consumers and markets.”
This guidance bolsters risk assessment standards “for coin-listing policies and tailors enhanced requirements for retail consumer-facing businesses.”
The guidance also requires licensees “to develop and submit to DFS for approval a coin-delisting policy that is compliant with this guidance to ensure that, in the event a coin must be delisted, it can be done in an orderly way that protects consumers and minimizes market disruption.”
This announcement builds upon Superintendent Harris’ VOLT initiative, “through which the Department has added more than 60 experts to oversee licensing and strengthen supervision, enhanced existing and established new policies and procedures, and enacted new assessment authority to support the continued growth of the virtual currency unit. Leveraging the Department’s vast knowledge of the industry, DFS has now issued eight pieces of virtual currency regulatory guidance, protecting consumers, businesses and markets as the industry develops and changes.”
In addition, under Superintendent Harris, the Department “has levied over $132 million in penalties against virtual currency companies and used existing supervisory and enforcement authority to require companies to remediate bad behavior.”
Prior to adoption, DFS conducted in-depth research, “met with key stakeholders and received constructive feedback which informed the guidance. DFS uses all of its regulatory tools to make data-driven policy decisions and adapt regulatory oversight to the changing risks in the virtual currency market.”
For more details on this update, check here.