The New York State Department of Financial Services (NYDFS) has stringent crypto rules and guidance for crypto firms operating and providing services in the state. In a recent rule change, the NYDFS will propose a framework to improve transparency regarding crypto-related activities, including crypto listings and delistings.
The New York State Department of Financial Services (NYDFS) to introduce proposed guidance for crypto firms on evaluating a crypto offering before listing and delisting.
The NYDFS’ proposed framework prepares to increase transparency in coin listing. The regulator also describes steps and criteria for deciding the delisting of crypto. In addition, the proposed framework will guide firms on firm-specific crypto listing and delisting.
NYDFS Superintendent Adrienne Harris said the guidance will help standards related to crypto offerings more robust. the regulator found many shortcomings in recent studies.
Crypto companies registered in the state are required to submit new coin-listing and delisting policies to the NYDFS. The areas of policy requirement are governance for the crypto-listing process, risk assessments of crypto, and procedures to monitor crypto. Also, the listing policy must reflect a company’s business model, operation, and customers. The proposed legislation is open for public comment until October 20.
Crypto firms can continue listing after their policy is approved by the NYDFS. However, firms must continue to provide written notice before listing new crypto and share details on all crypto it offers or uses.