NYDFS sets new rules for crypto firms to protect investors, affecting major players like Circle, Gemini, and PayPal.
The New York State Department of Financial Services (NYDFS) has issued new regulations for cryptocurrency firms. To help safeguard investors, these firms must obtain NYDFS authorization for their procedures on listing and delisting coins beginning November 15.
The New York Department of Financial Services will analyze firm policies against higher risk assessment requirements, taking into account technological, operational, cybersecurity, and other concerns. All licensed digital currency enterprises in New York must comply with these new regulations. Since September, the NYDFS has been soliciting public feedback on this plan.
Impact on Major Crypto Firms
Companies with pre-approved policies, such as Circle, Gemini, Fidelity, Robinhood, and PayPal, must now obtain new approvals.
After a preliminary discussion with the NYDFS on December 8, 2023, they have until January 31, 2024, to submit their updated policies.
According to Superintendent Adrienne A. Harris, the goal of these measures is to create a regulated means for New Yorkers to acquire cryptocurrencies, rather than to crack down on the business. Earlier this year, the NYDFS also improved its ability to detect criminal crypto operations. With 19% of its people possessing cryptocurrencies, New York is a major hotspot for blockchain startups.