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 on adopting crypto assets.
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 the crypto industry, the NYDFS has tailored the new guidelines to 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 to safeguard consumers and minimize market disruptions.
Transparency in Crypto Offerings
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 CurrenciesMore here: https://t.co/F2eyZKzucG pic.twitter.com/p5kfXfUVnO
— NYDFS (@NYDFS) November 15, 2023
Under Harris' 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. Harris said that the focus on delisting strategies underscores the regulator's commitment to adapting to the emerging risks.
NYDFS Introduces Comprehensive Crypto Guidelines
At the beginning of the year, the NYDFS issued comprehensive regulatory guidance for the crypto industry. These guidelines mandate all crypto companies to segregate customer funds from their own, ensuring a clear delineation of assets.
Harris emphasized that the primary aim of these rules is to safeguard customers. Besides that, the guidelines provide clarity on custody and safekeeping services, setting transparent expectations for crypto companies. The guidelines address sub-custody arrangements with third parties, emphasizing the importance of responsible partnerships.
Harris' decision to release these guidelines comes in the wake of broader market challenges, notably highlighted by the collapse of major crypto entities like FTX and Terra Luna. These events have intensified concerns about the industry's stability and underscored the necessity for robust regulatory frameworks.
This article was written by Jared Kirui at www.financemagnates.com.
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