WEB3
by BSC News
November 16, 2023
The retail-focused guidance emphasizes risk management standards, introducing comprehensive evaluation criteria for coin listing policies.
New York State Department of Financial Services Superintendent, Adrienne A. Harris, has revealed updated guidelines for cryptocurrency listing and delisting policies. The measures, outlined in a Wednesday release, introduce enhanced risk assessment standards to ensure a secure and transparent environment for investors in the cryptocurrency market.
To enhance scrutiny, the NYDFS will evaluate companies' policies based on various risk factors, including technological risks, operational vulnerabilities, cybersecurity threats, market risks, liquidity challenges, and potential engagement in illicit activities. This multifaceted evaluation aims to provide a holistic overview of the risks associated with tokens listed by digital currency business entities.
Under the state's Banking Law, the forthcoming amendments will cover limited-purpose trust organizations and digital currency businesses licensed under the New York Codes, Rules, and Regulations. The NYDFS initially opened the floor for public comments on this regulatory proposal in September.
As a result of the new measures, cryptocurrency companies with pre-existing authorized coin listing policies are now prohibited from self-certifying any tokens. Instead, they must apply to the NYDFS for approval under the heightened risk assessment standards.
Among those obligated to comply with the updated regulations are stablecoin issuer Circle, crypto exchange Gemini, fund manager Fidelity, trading platform Robinhood, and payments giant PayPal.
To align with the new guidelines, impacted enterprises must submit their draft coin listing and delisting policies to the NYDFS by December 8, 2023. The finalized policies must be officially submitted by January 31, 2024, signaling a timeline for companies to adapt to the evolving regulatory landscape.
NYDFS Superintendent Adrienne A. Harris emphasized that the new guidelines will be enforced through an "innovative and data-driven approach" to closely monitor coin listings, delistings, and overall market dynamics. Harris clarified that this does not represent a state-wide crackdown on the cryptocurrency market but rather an initiative to foster responsible practices.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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