Enhanced Cryptocurrency Listing and Delisting Regulations Proposed by New York Regulatory Authority
In the state of New York, license holders will be required to thoroughly evaluate the technological, market, and regulatory risks associated with the inclusion of cryptocurrencies in compliance with the BitLicense framework.
The New York Department of Financial Services is proposing stricter regulations for the listing of crypto coins, particularly those aimed at retail investors. This was outlined in the updated guidelines released by the regulatory body on Monday.
Under the proposed consultation led by NYDFS Superintendent Adrienne Harris, licensees will not only need to conduct assessments on the legal, reputational, and market risks of newly introduced coins but also provide a clear plan for the delisting process of a token.
Adrienne Harris emphasized the Department's commitment to staying aligned with industry advancements to safeguard consumers and markets. She pointed to a dedicated team of over 60 professionals and more than $132 million in fines imposed on virtual currency firms since her tenure at DFS.
Back in April, the regulator, which had previously penalized companies like Coinbase and Robinhood, outlined the criteria for evaluating crypto firms in terms of anti-money laundering measures and cybersecurity standards.
As part of the September updates, the regulator also revised its list of approved coins (greenlisted), allowing licensees to list or hold them without facing additional regulatory obstacles. Notably, this now encompasses bitcoin (BTC), ether (ETH), and stablecoins issued by PayPal and Gemini.
New York has been at the forefront of U.S. efforts to regulate the crypto industry. While some have praised the increased regulatory clarity, others, including Kraken, have chosen to withdraw from the state in protest.