The New York State Department of Financial Services (NYDFS) has enacted a regulation that will enable the government agency to obtain supervisory costs from licensed cryptocurrency firms operating within the state.
NYDFS implements regulation to collect supervisory costs
In an April 16 announcement, the NYDFS stated that the supervisory costs resulting from the new regulation would be allocated towards “adding top talent to its virtual currency team.” The government department will assess costs for the supervision and examination of crypto firms operating in the state with a BitLicense.
NYDFS Superintendent Adrienne Harris said, “This regulation provides the Department with additional tools and resources to regulate the virtual currency industry now and in the future, as innovators create new products and use cases for digital assets.”
Crypto firms operating in New York State are generally required to apply for a BitLicense, a mandate for companies since 2015. The NYDFS proposed adopting the regulation to assess costs in December 2022, subsequently meeting with “key stakeholders” and receiving feedback. According to the regulator, the proposed rule was introduced as a response to the state’s Financial Services Law not containing a provision on the assessment of operating costs.
As of February 10, the NYDFS listed 33 companies involved in crypto and blockchain operating in the state under a virtual currency license, limited purpose trust charter, or money transmitter license. New York City Mayor Eric Adams suggested the state abandon the BitLicense regime in April 2022, arguing that the requirements impeded economic growth and innovation.
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