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The New York state Department of Financial Services releases guidelines for regulated banks looking to provide virtual currency

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The New York state Department of Financial Services

The New York state Department of Financial Services (DFS) has released guidelines for regulated banks looking to engage in activities with virtual currency.

The 11-page document explains the application process and “summarizes the types of information the Department considers relevant” for obtaining the agency’s approval.

Approval is required 90 days before engaging in activities, and approval for past activities “does not constitute general consent” for other activities.

Institutions already engaged in virtual currency activities were told to contact their points of contact at the agency immediately.

New York is known for its strict regulation of the crypto industry and has faced criticism for stifling innovation and growth.

The state was the first to introduce its BitLicense in 2014 and impose strict requirements for stablecoin reserves and redeemability in June. In December, it proposed adding an annual assessment fee for licensed crypto firms.

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Roland is a Public Relations & Communications guru with an immense passion for the blockchain and crypto industry. A fusion of his expertise and passion led to the dawn of Optimisus in 2020.