Senate Authorizes NYDFS to ‘Assess’ Crypto Companies

Senate Authorizes NYDFS to ‘Assess’ Crypto Companies

Senate Authorizes NYDFS to 'Assess' Crypto Companies

The New York Senate has unanimously approved a bill that would allow the NYDFS to “assess the feasibility” of creating a licensing program for digital currency businesses.

The move comes as the NYDFS is already in the process of crafting regulations for the cryptocurrency industry. The agency is also investigating several crypto companies for potential violations.

The New York Senate approved its budget for the fiscal year 2023 last week. The budget includes a special provision that tasks the NYDFS with developing a new “assessment” for the cryptocurrency companies it oversees. The goal of this provision is to make sure its supervision mandate as regards virtual currencies operates in the same way the regulator supervises traditional banks and non-crypto financial services firms.

The NYDFS is in charge of the most developed crypto regulation operations in the U.S. through its virtual currency licensing regime, this regime is commonly referred to as the BitLicense. A BitLicense is necessary before financial services companies can offer cryptocurrency trading or wallet services to New York residents.

The new assessment, according to the state’s Senate Banking Committee report, will start in January 2023. The move comes as other states have proposed similar actions. Wyoming lawmakers, for example, are currently considering a bill that would exempt digital assets from securities laws.

“The expenses of every examination of the affairs of any person regulated according to this chapter that engages in virtual currency business activity shall be borne and paid by the regulated person so examined, but the superintendent, with the approval of the comptroller, may in the superintendent’s discretion for good cause shown remit such charges,” the text of the budget said.

In a released statement, NYDFS Superintendent Adrienne Harris said the budget would “The budget includes a new authority to collect supervisory costs from licensed virtual currency businesses, like the Department already does for banking and insurance companies.”

Martin K
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I am a bitcoin and crypto currency writer. I also work as a professional trader, and I have experience with stock trading and bitcoin trading. In my work, I aim to provide clear and concise information that helps people understand these complex topics.