The state of New York wants to introduce stricter regulations for crypto. The New York State Department of Financial Services (NYDFS) has drafted a bill that aims to tighten requirements for crypto companies.
Under the leadership of Superintendent Adrienne A. Harris, NYDFS has launched a new initiative called VOLT. The VOLT Initiative is a two-year program aimed at strengthening cryptocurrency oversight.
NEW: Superintendent Harris provides update on NYDFS’s two-year transformation initiative to strengthen national leadership #Virtual Currency At sight.
– NYDFS (@NYDFS) September 18, 2023
Crypto monitoring using the “Green List”
These new standards are intended to more effectively address risks such as illicit financing, legal challenges, reputational issues, market volatility, liquidity and regulatory compliance. The aim is to strengthen the integrity of the crypto market and better protect investors.
Another striking aspect of the proposed regulation is the framework of a “green list”. The NYDFS determines which cryptocurrencies and tokens are eligible for inclusion on this list. Currently, the list includes some of the most well-known names in the crypto world, including Bitcoin (BTC) and Ethereum (ETH), as well as certain stablecoins.
Harris emphasizes the importance of these measures:
“We have expanded our team, improved consumer protections and worked with policymakers around the world to regulate and grow the sector.”
New York seeks feedback on crypto regulations
Recent fines against crypto exchanges like Robinhood and Coinbase show that the New York State Department of Financial Services is serious about regulating the crypto market. Crypto companies are actively held accountable for their behavior. The state of New York already has strict regulations in the form of a so-called BitLicence.
To ensure that these regulations meet the needs of the crypto community, the NYDFS is launching a call for feedback. This gives both beginners and experienced crypto enthusiasts the opportunity to share their insights and contribute to a better regulated crypto market in New York. The proposed rules are open for public comment until October 20, 2023.