The New York State Department of Financial Services (NYDFS) has introduced new regulations impacting big crypto players like Circle, Gemini, and PayPal.
Effective November 15, crypto companies must seek NYDFS authorization for listing and delisting coins to enhance investor protection.
The NYDFS will evaluate firm policies against elevated risk assessment criteria, considering factors like technology, operations, and cybersecurity.
All licensed digital currency enterprises in New York are required to adhere to these regulations, following public feedback solicited since September.
Notably, firms with pre-approved policies, including Circle, Gemini, Fidelity, Robinhood, and PayPal, must now obtain new approvals.
Following an initial discussion with the NYDFS on December 8, 2023, they have until January 31, 2024, to submit their updated policies.
Superintendent Adrienne A. Harris emphasizes that these measures aim to establish a regulated framework for New Yorkers to acquire cryptocurrencies rather than imposing restrictions on the industry.
This move aligns with the NYDFS’s broader efforts to enhance its ability to detect criminal activities within the crypto space, implemented earlier this year.