New York State’s financial regulator Wednesday introduced a plan that would allow licensed virtual currency companies that have already received a license for coin listings to add new coins without additional permission.
The New York State Division of Financial Services (NYDFS) is asking for the public’s input in regards to the plan, which the regulator stated stems from a review of its present virtual currency framework.
New York revealed its BitLicense and initial framework in 2015 when other regulators will be still skeptical of virtual currencies. Those currencies are now a part of a wider, rapidly developing industry that combines finance and technology, and which leading financial facilities are eager to attract.
Since 2015, NYDFS granted two dozen permits and charters to digital currency corporations. A few of those corporations have requested to list new coins along with those that NYDFS accepted in their initial applications, the regulator stated.
The plan aims to enhance efficiency by permitting digital currency companies licensed by New York “to offer and use new coins on time,” the regulator mentioned in the proposal.
The plan would impose certain conditions on New York- licensed digital currency corporations that wish to offer new coins without the regulator’s preapproval. For instance, firms must develop a coin-listing policy, to be accepted by NYDFS, that features processes for reviewing new coins and procedures for informing the regulator when they’re listed.
Digital currency companies would also need to conduct risk evaluations of new coins, including cybersecurity risk.
Companies that do not have an NYDFS-approved policy must acquire the regulator’s prior permission before listing coins other than those authorized by their original permit.