The New York State Department of Financial Services (NYDFS) will propose a framework to enhance the transparency of crypto-related activities, such as listing and delisting.
The Wall Street Journal reported on September 18 that the New York State Department of Financial Services (NYDFS) will introduce proposed guidance for evaluating a crypto offering before listing and delisting.
The proposed framework of the NYDFS intends to increase the transparency of coin listing. In addition, the regulator describes the procedures and criteria for delisting a cryptocurrency. In addition, the proposed framework will guide firms’ listing and delisting of cryptocurrencies.
Superintendent of the NYDFS Adrienne Harris stated that the guidance will strengthen crypto-related offering standards. Recent studies had numerous flaws, according to the regulator.
“When we know that a coin that someone once thought was OK when we see that new risks have emerged or the coin is being misused, we want our entities to have a way to delist the coin in a way that’s still protective of consumers and protects safety and soundness as well.”
The NYDFS requires state-registered crypto enterprises to submit new coin listing and delisting policies. The policy requirements are governance for the crypto-listing process, crypto risk assessments, and crypto monitoring procedures.
In addition, the listing policy must reflect the company’s business model, operations, and customers. The legislative proposal is open for public comment until October 20.
After the New York Department of Financial Services (NYDFS) approves a company’s listing policy, the company can continue listing. However, firms must continue to provide written notice before listing new cryptocurrencies and disclose information on all cryptocurrencies they offer or use.
NYDFS Strict Crypto Regulations
The New York Department of Financial Services (NYDFS) has maintained a strict regulatory posture against the cryptocurrency market, imposing fines and enforcement against crypto companies.
The New York regulator’s action against Paxos posed significant obstacles for Binance after it ordered the exchange to cease minting BUSD in February. The NYDFS has issued fines to Coinbase, BitPay, and Robinhood while maintaining its strict stance.
Harris noted that the scale of the NYDFS’s crypto unit has nearly tripled in the past two years, increasing to roughly 60 personnel. Additionally, the regulator is known for its stringent crypto regulations.
