The New York Department of Financial Services (NYDFS) issued updated regulations regarding the listing and delisting of virtual currency on Nov. 15.
The department said that the new guidance builds on rules that it issued on Sept. 18. It said that it received input from various entities in a later comment period and is now setting out “new heightened standards.” In addition to identifying various concerns, it said that the updated guidance contains clearer definitions of certain terms.
In practical terms, the guidance states that companies that previously had an approved cryptocurrency listing policy cannot self-certify any listings until they have both listing and delisting policies approved by the regulator under the new guidance.
The guidance also states that companies with an approved listing policy must notify NYDFS in writing of any self-certified listings and maintain records.
The guidance allows companies that do not have an approved listing policy to list cryptocurrencies that are included on the NYDFS greenlist. That greenlist includes Bitcoin (BTC), Ethereum (ETH), and six stablecoins, including PayPal USD (PYUSD).
Finally, companies must be able to safely end support for any coin when an elevated risk is identified. Therefore, all affected companies must have a coin delisting policy even if they do not have a listing policy. Companies creating delisting policies must meet a draft deadline on Dec. 8, 2023, and a final deadline on Jan. 31, 2024.
Rules apply to companies regulated in NY
The regulations apply to the 33 entities that are currently regulated under New York’s BitLicense or its Limited Purpose Trust Charter.
This includes virtually all cryptocurrency firms that are engaged in activities in the state of New York. The list of regulated firms includes major companies such as Bakkt, BitGo, Coinbase, Gemini, Genesis, Fidelity, PayPal, Paxos, and several others.
Known for its rigorous cryptocurrency regulations, New York’s current guidance does not seem to restrict the operations of the discussed companies, but it does underline the state’s strict approach to compliance.
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