The New York State Department of Financial Services (NYDFS), which oversees and regulates financial activities in the state, has issued new guidance for the listing and delisting of cryptocurrencies. Superintendent Adrienne Harris published the updated guidance, titled “Guidance Regarding Listing of Virtual Currencies,” following the proposal of a draft in September. The release comes after public consultations were sought to gather input on the content of the guidance.
What the New Guidance Means
The guidance issued by the New York State Department of Financial Services (NYDFS) aims to raise the standards for the cryptocurrency listing and delisting process. According to the guidance, all New York-chartered virtual currency businesses (VC Entities) are required to submit their coin-listing and coin-delisting policies for approval by the agency. The NYDFS emphasizes that no coin-listing policy will be approved without a corresponding coin-delisting policy.
VC Entities that fail to implement the approved listing and delisting policies are prohibited from listing or delisting any coins not included in the NYDFS’s “greenlist.”
The guidance also stipulates that if a listed coin is identified as presenting “newly elevated risk,” whether through the VC Entity’s monitoring process, a weakness or vulnerability identified by the DFS, or other means, the VC Entity must discontinue support for that coin. This underscores the NYDFS’s commitment to ensuring a robust and secure environment for cryptocurrency activities within its jurisdiction.
Superintendent Adrienne Harris emphasized the New York State Department of Financial Services’ (NYDFS) commitment to an innovative and data-driven approach to virtual currency oversight with the release of the updated guidance. The NYDFS aims to stay current with industry developments and ensure that its regulatory framework effectively protects consumers and markets.
The guidance, titled “Guidance Regarding Listing of Virtual Currencies,” is effective immediately and replaces the prior guidance published in 2020. All virtual currency entities (VC Entities) are required to meet with the NYDFS by December 8, 2023, to present their coin-delisting policy drafts. The final coin-delisting policies must be submitted to the NYDFS for approval by January 31, 2024. These timelines reflect the NYDFS’s proactive stance in adapting and refining its regulatory measures in the rapidly evolving landscape of virtual currencies.