Superintendent Adrienne Harris of the New York State
Department of Financial Services (NYDFS) has unveiled new guidance on
coin listing and delisting policies. This latest development sets new industry
standards and reflects the department’s stance in adapting virtual
currencies.
According to the official statement by the NYDFS, the
updated guidelines introduce risk assessment standards, focusing on
coin listing policies. In light of the diverse nature of crypto industry, the NYDFS has tailored the new guidelines to address retail crypto trading.
One of the pivotal aspects of the guidance is the
requirement for licensees to develop and submit a coin delisting policy for approval by the NYDFS. This move aims to facilitate an orderly delisting process,
safeguarding consumers and minimizing disruptions in the market.
Harris mentioned: “This guidance continues the
Department’s commitment to an innovative and data-driven approach to virtual
currency oversight, keeping pace with industry developments. NYDFS is at the
forefront of virtual currency regulation, translating years of knowledge and
experience into timely and relevant guidance which protects consumers and
markets.”
NEW: DFS Superintendent Adrienne A. Harris Adopts New Regulatory Guidance Regarding the Listing of Virtual Currencies
More here: https://t.co/F2eyZKzucG pic.twitter.com/p5kfXfUVnO
— NYDFS (@NYDFS) November 15, 2023
Under Superintendent Harris’s leadership, the NYDFS
has enforced over $132 million in penalties, against virtual currency
companies. The regulator maintains that companies must be held accountable,
with remediation measures enforced to correct any detrimental behavior.
In September, the NYDFS unveiled the proposed
guidance, highlighting the expectations for crypto firms regarding the
evaluation and management of coin offerings. The proposed framework has highlighted expectations for drafting
firm-specific coin listing and delisting policies.
This approach aims to provide a structured and
transparent process for evaluating coin offerings before adoption and
establishing criteria for responsible coin delisting. Superintendent Harris said
that the focus on delisting strategies underscores the regulator’s commitment
to adapting to the emerging risks.
NYDFS Introduces
Comprehensive Crypto Guidelines
Separately, the NYDFS issued comprehensive regulatory guidance at the beginning of the year. These guidelines mandate all crypto
companies to segregate funds belonging to customers and the companies
themselves. Harris emphasized that
these rules are aimed at safeguarding customers.
Besides that, the guidelines focus on clarifying
custody and safekeeping services, setting transparent expectations for crypto
companies. The guidelines touch on sub-custody arrangements with third parties,
emphasizing the need for responsible partnerships.
Harris’ decision to issue guidelines comes in the wake of broader market
challenges, including the collapse of major crypto players. The collapse of FTX,
along with the preceding Terra Luna incident, raised concerns about the
industry’s stability.
Superintendent Adrienne Harris of the New York State
Department of Financial Services (NYDFS) has unveiled new guidance on
coin listing and delisting policies. This latest development sets new industry
standards and reflects the department’s stance in adapting virtual
currencies.
According to the official statement by the NYDFS, the
updated guidelines introduce risk assessment standards, focusing on
coin listing policies. In light of the diverse nature of crypto industry, the NYDFS has tailored the new guidelines to address retail crypto trading.
One of the pivotal aspects of the guidance is the
requirement for licensees to develop and submit a coin delisting policy for approval by the NYDFS. This move aims to facilitate an orderly delisting process,
safeguarding consumers and minimizing disruptions in the market.
Harris mentioned: “This guidance continues the
Department’s commitment to an innovative and data-driven approach to virtual
currency oversight, keeping pace with industry developments. NYDFS is at the
forefront of virtual currency regulation, translating years of knowledge and
experience into timely and relevant guidance which protects consumers and
markets.”
NEW: DFS Superintendent Adrienne A. Harris Adopts New Regulatory Guidance Regarding the Listing of Virtual Currencies
More here: https://t.co/F2eyZKzucG pic.twitter.com/p5kfXfUVnO
— NYDFS (@NYDFS) November 15, 2023
Under Superintendent Harris’s leadership, the NYDFS
has enforced over $132 million in penalties, against virtual currency
companies. The regulator maintains that companies must be held accountable,
with remediation measures enforced to correct any detrimental behavior.
In September, the NYDFS unveiled the proposed
guidance, highlighting the expectations for crypto firms regarding the
evaluation and management of coin offerings. The proposed framework has highlighted expectations for drafting
firm-specific coin listing and delisting policies.
This approach aims to provide a structured and
transparent process for evaluating coin offerings before adoption and
establishing criteria for responsible coin delisting. Superintendent Harris said
that the focus on delisting strategies underscores the regulator’s commitment
to adapting to the emerging risks.
NYDFS Introduces
Comprehensive Crypto Guidelines
Separately, the NYDFS issued comprehensive regulatory guidance at the beginning of the year. These guidelines mandate all crypto
companies to segregate funds belonging to customers and the companies
themselves. Harris emphasized that
these rules are aimed at safeguarding customers.
Besides that, the guidelines focus on clarifying
custody and safekeeping services, setting transparent expectations for crypto
companies. The guidelines touch on sub-custody arrangements with third parties,
emphasizing the need for responsible partnerships.
Harris’ decision to issue guidelines comes in the wake of broader market
challenges, including the collapse of major crypto players. The collapse of FTX,
along with the preceding Terra Luna incident, raised concerns about the
industry’s stability.
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- Source: https://www.financemagnates.com//cryptocurrency/new-york-wants-crypto-firms-to-submit-coin-delisting-policy-in-new-guidance/
