The New York State Department of Financial Services (DFS), the department responsible for regulating financial services in New York has announced a plan to charge crypto companies for providing regulatory services.
Adrienne A. Harris, the Superintendent of Financial Services gave the announcement via a press release. The proposed policy has been made public to solicit feedback from the online community. The DFS will consider all comments submitted and either release a revised proposal or a notice of final regulation adoption.
According to the report, the proposed policy will help provide the DFS with resources for recruiting excellent personnel for its digital currency regulatory team.
It’s important to note that the DFS already collects the supervision fee from licensed non-virtual companies such as the banking institutions in the state.
The policy is expected to cover only crypto businesses that have licenses (BitLicense) to operate in the state and the assessment solely covers the expenditures and expenses related to the Department’s oversight of each individual’s digital currency business activities.
Superintendent Harris highlighted that the proposed policy will assist the Department in continuing to safeguard customers and ensure the safety and soundness of the blockchain industry.
New York in the Growing Crypto Market
The DFS has consistently offered instructions for the regulation of the crypto ecosystem to ensure consumer safety.
Superintendent Harris issued new guidance via a press release on the use of Blockchain Analytical Tools as a best practice for preventing and managing financial risks and suspicious activities.
The DFS established new guidance for crypto companies to Create control mechanisms that may make use of blockchain analytics, Enhance due diligence controls, Perform on-chain transaction monitoring, and Conduct an on-chain sanctions screening.
The New York Attorney General (NYAG), Letitia James, wrote a letter to the U.S. Congress on how citizens’ retirement assets can be protected.
James encouraged congress to pass legislation that would make it illegal to support the acquisition of digital assets like cryptocurrencies with money from IRAs as well as defined contribution plans like the 401(k) and 457 programs.
The Mayor of New York, Eric Adams, an ardent proponent of cryptocurrencies, declared that he is still committed to making New York a crypto hub after a bill to restrict the mining of crypto in some parts of the state was signed by Kathy Hochul, the governor of New York.
