The New York State Department of Financial Services (NYDFS) will implement an “innovative and data-driven approach” to oversee coin listings, delistings, and the crypto market, according to Superintendent of Financial Services Adrienne A. Harris.
What Happened: The NYDFS announced strict guidelines for crypto listing delisting, which require crypto firms to seek the department’s approval for their coin listing and delisting policies.
Firms will not be allowed to self-certify any new cryptos for trading unless they have submitted a compliant coin-listing and delisting policy.
It will apply to companies licensed as Limited Purpose Trust Companies under the New York Banking Law.
These policies were finalized after the NYDFS requested public feedback on them in September 2023 and incorporated changes into the final version.
The new guidelines will imply firms to consider factors like business model considerations and risk-based considerations. It will also require any delisting to be made more transparent and notify customers about removing support for cryptocurrencies they once listed.
These policy changes will reportedly impact industry biggies like crypto exchange Gemini, payments giant PayPal Holdings Inc (NASDAQ: PYPL), crypto exchange Coinbase (NASDAQ: COIN), and payments service provider Bitpay. They are required to meet the department’s requirements before Dec. 8, and review their coin listing and delisting policies draft and submit them by Jan. 31, 2024.
The guidelines exclude certain coins like stablecoins which will be included only if they are on the state’s greenlist. It disallows tokens that have been bridged from their native chain. Also, coins with less than 35% of the total supply are not allowed.
“We want to ensure that New Yorkers have a well-regulated way to access the virtual currency marketplace and that New York remains at the center of technological innovation and forward-looking regulation,” Harris said.
Produced in association with Benzinga
