The NYDFS is seeking a policy specialist to address critical crypto, DeFi, and AI issues within financial services.
The New York State Department of Financial Services (NYSDFS) is looking to hire a specialist to assist in developing policies concerning cryptocurrencies, decentralized finance (DeFi), and artificial intelligence, among other related areas.
The position is within the Innovation Policy Unit, where the selected candidate will address “cutting-edge policy issues” within the broader financial services sector.
According to the job listing, the specialist will help resolve policy matters in traditional markets and in the realms of crypto, DeFi, and the application of AI and machine learning in financial markets.
NYSDFS Continues to Refine BitLicense Requirements
The NYSDFS introduced BitLicense, New York’s business license for cryptocurrency operations, in August 2015 and has been actively refining it to maintain oversight of crypto exchanges and service providers.
When BitLicense was first implemented, major crypto companies like Bitfinex, Kraken, and Paxful exited the state due to non-compliance.
On November 15, the NYSDFS introduced new regulations requiring crypto companies to submit their coin listing and delisting policies for NYSDFS approval.
The agency will evaluate the tokens’ technological, operational, cybersecurity, market, liquidity, and illicit activity risks.
In January, New York State Comptroller Thomas DiNapoli raised concerns about the NYSDFS’s handling of BitLicense.
DiNapoli noted that several security checks, including fingerprinting processes, were incomplete before granting license approvals.
Gaps in New York’s Crypto Licensing Standards
The NYSDFS has also been criticized for failing to adequately verify applicants’ tax obligations or minimum net worth documentation.
Members of the Innovation Policy Unit are expected to conduct qualitative and quantitative research to support the NYSDFS’s policy reviews.
On May 30, the NYSDFS established customer service standards for regulated virtual currency entities (VCEs) or crypto exchanges.
Supervisor Adrienne Harris stated that recordkeeping, including customer feedback, must begin in the third quarter of 2024 and be accessible to the NYSDFS by November 1.
She added, “This guidance outlines clear expectations for a positive customer experience, which benefits both consumers and business.”
Currently, 32 crypto exchanges are registered under BitLicenses or trust charters in New York.
