The New York State Department of Financial Services, or NYDFS, has adopted a regulation that will allow the government agency to assess the costs of oversight of licensed crypto companies operating in the state.
In an April 16 announcement, the NYDFS said that the supervision costs imposed by the new regulation would be used to “add the best talent to your virtual currency team”. The government department will assess the costs of supervision and examination of crypto companies operating in the state with a BitLicense.
“This regulation provides the Department with additional tools and resources to regulate the virtual currency industry now and in the future, as innovators create new products and use cases for digital assets,” stated NYDFS Superintendent Adrienne Harris.
Crypto businesses operating in New York state are largely required to apply for a BitLicense, a regulatory requirement since 2015. The NYDFS proposed adopting the regulation to assess costs in December 2022, after which it met with “key stakeholders” and received feedback. According to the regulator, the proposed rule was added in response to the fact that the state’s Financial Services Law did not include such a provision on the evaluation of operating costs.
The NYDFS listed 33 companies in the crypto and blockchain space that operate in the state under a virtual currency license, limited purpose charter of trust, or money transmitter license as of February 10. In April 2022, New York Mayor Eric Adams suggested that the state remove the BitLicense regime, claiming that the requirements stifle innovation and economic growth.
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