NYDFS Tightens Rules for Crypto Listings and De-listings

• New York State Department of Financial Services Strengthens Cryptocurrency Regulations
• Updated Guidelines for Crypto Companies
• Commitment to Innovative Oversight
• New Rules for Crypto Companies
• Feedback Period

New York State Department of Financial Services Strengthens Cryptocurrency Regulations

The New York State Department of Financial Services (NYDFS) has announced an enhancement of its guidelines for listing or delisting cryptocurrencies in an effort to increase the safety measures for cryptocurrency investors across the state. Superintendent of NYDFS, Adrienne A. Harris, confirmed this through a statement released on Wednesday.

Updated Guidelines for Crypto Companies

The revised guidelines necessitate crypto companies to have their coin listing and delisting policies approved by NYDFS. The established policies of these companies will be evaluated against tougher risk assessment standards. This is to ensure that delistings transpire smoothly, protecting consumers and mitigating any major market disruption, as stated in the announcement.

Commitment to Innovative Oversight

The updated guidance perpetuates the Department's dedication towards an innovative and data-backed approach to the oversight of virtual currency, keeping in line with industry developments, as stated by Harris.

New Rules for Crypto Companies

Further, the new regulations oblige companies to give advance notice for token delistings and demand increased transparency with customers about the withdrawal of support for cryptocurrencies that were once listed on their platforms. Companies are also required to design their policies based on specific factors. These factors include their particular business model, operations, customer base, counterparties, operational geographies, service providers, as well as the use, purpose, and distinctive features of the coins under consideration.

Feedback Period

The updated guidance by NYDFS was launched subsequent to a feedback period that commenced in September.

Edited by Jonathan Stoker