NY strengthens cryptocurrency listing rules to protect investors
Key Takeaways
- NYDFS has strengthened its guidelines for cryptocurrency listings and delistings to enhance investor protection.
- The new regulations affect major cryptocurrency companies and require approval from NYDFS for their coin listing and delisting policies.
- The move is part of New York’s strategy to remain a leader in technological innovation while ensuring access to regulated cryptocurrency markets.
The New York State Department of Financial Services (NYDFS) has strengthened its guidelines for cryptocurrency listings and delistings to enhance investor protection.
These enhanced measures, announced on November 15, require cryptocurrency companies to: Seeks NYDFS approval for coin listing and delisting policies..
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These updated regulations have been set. Against the backdrop of strengthened risk assessment criteria Founded by NYDFS. evaluation Contains various concernsincluding technical, operational, cybersecurity, market, liquidity and risks associated with illegal activities related to tokens.
These amendments Affects all digital currency businesses licensed under New York rules, rules and regulations. A limited purpose trust company subject to state banking laws.
This plan from NYDFS first appeared in September. When the department requested public feedback on the proposal.
Importantly, cryptocurrency companies with NYDFS-approved coin listing policies can now Self-certification of tokens is restricted without further approval from regulators..
Among those affected by the new guidelines are prominent players in the cryptocurrency space.They include stablecoin issuer Circle, cryptocurrency exchange Gemini, fund manager Fidelity, trading platform Robinhood, and payments provider PayPal.
These entities must: We present the coin’s preliminary listing and delisting policy. Submit to NYDFS by December 8, 2023 and final version by January 31, 2024.
Financial Services Commissioner Adrienne Harris emphasized that NYDFS aims to: It adopts an “innovative, data-driven approach” to overseeing coin listings.Delistings and the broader cryptocurrency market.
Harris said these increased regulations This is not a crackdown on the cryptocurrency industry. But rather We are working to ensure that New Yorkers can regulate their access to virtual currency markets.
In February, NYDFS expanded its capabilities to: Detection of illegal activity related to cryptocurrencySuch as insider trading and market manipulation.
New York, a pivotal hub for blockchain-based companies, is home to about 690 companies, according to an August report from Coinbase. 19% of New Yorkers are cryptocurrency owners..
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