News

The New York state regulator, proposing a new framework for the crypto-currency offers

FILE PHOTO: A man works under a screen, with the price of Bitcoin is on the floor, with the Consensus of 2018 blockchain technology conference to be held in New York City, New York, New York, USA, May 16, 2018. REUTERS/Mike Segar

(Ap) – the State of New York’s financial regulator on Wednesday proposed a plan that would allow the licensing of virtual currency businesses, which have already received approval for the currency of the entries to enter a new currency without the need for additional consent.

The New York State Department of Financial Services (NYDFS) is asking for public input on the plan, the regulator said, will result from an assessment of the current virtual currency context.

In New York, the BitLicense, and the initial part of 2015, when all the other regulators, will continue to be skeptical about the virtual currency. These currencies are part of a larger, fast-growing sector that is fit for finance and technology, and that is where the main financial centres are keen to attract them.

Since 2015, the NYDFS granted the two dozen or so licenses, and charters for virtual currency businesses. Some of these companies have been asked to provide a list of the new coins, in addition to the ones that NYDFS-approved on their first applications, the regulator said.

The plan aims to improve efficiency by allowing virtual currency companies, and is licensed by the New York city “to the supply and use of the new currency in a timely manner,” the regulator said in the proposal. (on.ny.gov/2qGvDpF)

The plan would be subject to certain terms and conditions, for New York – licensed virtual currency firms that want to offer new currencies without the supervisor preapproval. For example, companies would have to develop a coin-trading policies, to be approved by the NYDFS, including the process for the review of a new currency, and the procedures for the notification of the regulator if they are to be displayed.

Virtual currency businesses would have to perform a risk assessment of the new coinage, including that of cyber-security risks.

Companies that don’t have an NYDFS-approved policy, would be to obtain the regulator’s prior approval for the listing of coins of other than those permitted by the original license.

Public comments on the proposal are due by Jan. 27, in the year 2020.

Reporting by Suzanne Barlyn in New York; Editing by Matthew Lewis

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular