The New York State Department of Financial Services, or NYDFS, has proposed a regulation that would allow the government entity to assess the costs of oversight of licensed cryptocurrency companies operating in the state.
In a December 1 announcement, NYDFS Superintendent Adrienne Harris opened the proposed budget measure up for referendum. The regulation, if approved, would give the department the authority to assess the costs of monitoring and evaluating companies operating in the state with a BitLicense, a necessary requirement for cryptocurrency companies since 2015.
“This review authority will allow the Department to continue to build the team that is leading the nation with a set of regulatory tools,” Harris said. “The ability to collect monitoring costs will help the Department continue to protect consumers and ensure the safety and soundness of this industry.”
#ICYMI: DFS Superintendent Adrienne A. Harris Announces New Proposed Virtual Currency Assessment Regulation. Read the Superintendent’s quote below â¬‡ï¸ pic.twitter.com/ITI9cxcPFA
— NYDFS (@NYDFS) December 1, 2022
Although some cryptocurrency companies continue to operate in New York with a BitLicense, many, including New York City Mayor Eric Adams, have criticized the move as a difficult barrier to overcome. The BitLicense originally cost USD 5,000 in processing fees, and the NYDFS established certain capital requirements to be able to operate in the state.
The proposed regulation was based on a rule enacted in April that gave the NYDFS “authority to collect the costs of supervision of licensed virtual currency companies.” Harris said the rule would help align regulations for cryptocurrency companies with those imposed on banks and insurance companies.
According to the NYDFS, the proposal will initially be open for popular consultation for 10 days, and then another 60 days after its publication in the state register.
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