Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The New York State Department of Financial Services (NYDFS) announced that it will begin charging cryptocurrency entities registered in the state for annual examination and oversight.
Superintendent Adrienne Harris clarified that the fees will vary for each organization, based on their size and complexity.
Integrating Crypto with Banking
The NYDFS indicated that the new regulation will be applicable to those entities that have already secured the so-called Bitlicense. The financial regulator implemented this regulatory framework in 2015, mandating crypto businesses to adhere to various standards concerning capitalization, anti-money laundering measures, and cybersecurity safeguards.
Each company will incur fees five times during the fiscal year (four projected quarterly payments and one based on actual costs). This legislation aligns with the commencement of New York’s fiscal year (April 1) and its conclusion (March 31).
The amendment seeks to bring the cryptocurrency sector into closer alignment with banking institutions and insurance companies, which are required to pay annual fees to the NYDFS for oversight. Superintendent Harris believes that the local digital asset sector could derive significant advantages from its partnership with the regulatory body:
ADVERTISEMENT
Related Posts
“When you can work hand-in-hand with your regulator and your examiners, we can help identify issues early before they metastasize, and it really is a service that we can provide to the industry, and it helps us as regulators better oversee the markets and protect consumers.”
Eric Soufer, an executive at consulting firm Tusk Strategies, commended the NYDFS for its stance on the crypto sector, asserting that it is one of the few that acknowledges the need for appropriate regulations in this area:
“I think the industry recognizes that New York is the only state that regulates crypto in a comprehensive and proactive way.”
The NYDFS’ Prior Guidance
The regulator had previously advised companies operating within the state to separate clients’ cryptocurrency holdings from their own assets, as co-mingling could lead to significant financial losses. They should also maintain records and ensure a “clear internal audit trail” to inform customers about any transactions involving their funds.
The NYDFS highlighted the growing interest in digital assets over recent years, asserting that the market requires a robust regulatory framework to operate effectively:
“As stewards of others’ assets, virtual currency entities (VCE) that act as custodians play an important role in the financial system and, therefore, a comprehensive and safe regulatory framework is vital to protecting customers and preserving trust.”
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
