Summary:
- NYDFS mandates stringent policies for crypto firms’ coin listing and delisting procedures, emphasizing enhanced risk assessment criteria for investor protection.
- Industry leaders including Circle, Gemini, Fidelity, Robinhood, and PayPal are among the firms compelled to conform to the updated guidelines, engaging in a compliance process with NYDFS by early 2024.
Recent directives from the New York State Department of Financial Services (NYDFS) impose stricter regulations on cryptocurrency firms’ coin listing and delisting policies. These measures aim to fortify investor protection standards within the burgeoning crypto market.
Heightened Standards For Crypto Listings
The NYDFS revealed new guidelines on November 15, compelling crypto entities to seek NYDFS approval for their coin listing and delisting policies. These policies will be scrutinized against a more robust set of risk assessment criteria established by the NYDFS. Factors such as technological robustness, operational integrity, cybersecurity measures, market stability, liquidity, and potential illicit activities associated with the tokens will undergo rigorous evaluation.
These regulatory changes extend their reach to all digital currency entities operating under the New York Codes, Rules, and Regulation or limited purpose trust companies governed by the state’s Banking Law. The proposal, initially soliciting public feedback in September, has now been solidified into mandated policy alterations.
Compliance And Deadline Mandate
Cryptocurrency firms previously granted approval for coin listing policies are barred from self-certifying any tokens until they secure NYDFS endorsement. Notable industry players like Circle, Gemini, Fidelity, Robinhood, and PayPal fall under the ambit of firms obliged to adhere to these enhanced regulations.
Affected entities must engage with the NYDFS by December 8, 2023, to present preliminary drafts of their coin listing and delisting policies, with the final submissions due by January 31, 2024.