Cryptocurrency entities authorized under the New York Financial Services Law (FSL) should pay the costs of regulatory oversight, according to Governor Andrew Cuomo. The NY Governor proposes to amend the FSL to place such entities on an even footing with other financial services companies. Will New York licensed crypto firms need to pay NYDFS oversight costs in the future?
10 January, 2020 | AtoZ Markets – The Democratic Governor wants state authorities to modify the Financial Services Law for currency-related entities. Governor Andrew Cuomo believes that licensed cryptocurrency enterprises have to pay for regulation costs associated with examination and oversight by the New York State Department of Financial Services (NYDFS).
NYDFS Is Often at the Forefront of New Regulation
NYDFS is one of the leading regulatory agencies for crypto-related activities in the New York State. The regulatory authority issues important crypto business license for cryptocurrencies, which are are called BitLicenses. As New York is the home of the United States’ financial capital, NYDFS is often at the forefront of new regulation.
Cuomo revealed his proposed amendment on January 8. The New York Governor outlined his “Making Progress Happen” program in there. The crypto-related FSL amendment is part of Cuomo’s 2020 state book. A 321-page list of policies suggested by the Governor to improve the state’s economy. However, Cuomo wants to put virtual currency firms on an equal footing with other financial services firms. All firms will have to pay the assessments to the NYDFS to cover the costs of supervision, according to the Governor. Such as the case was with Bittrex, the crypto exchange’s application for a BitLicense got rejected. Furthermore, in the document, the NY Governor stated further:
“Under current law, controlled entities under the Insurance Act or Banking Act are required to pay assessments to the DFS to cover examination and oversight costs. Entities authorized under the FSL don’t require to pay for such assessments. However, they are subject to similar examination and oversight requirements. But, the Governor proposes to change the FSL to place these entities on an equal footing with other financial services companies. “
BitLicense Issuance Guideline
NYDFS is responsible for issuing the BitLicense. It’s a special commercial license for virtual currency entities operating in the state. In December 2019, the agency also released its plan to include two new coin listing options. This expands the options for crypto firms to apply for different types of BitLicenses.
According to an official announcement, the NYDFS issued two dozen BitLicenses by the end of 2019. However, if Cuomo’s amendment would be approved. It will increase the cost of the operation for all cryptocurrency entities within FSL’s jurisdiction.
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