- Adrienne Harris has submitted the draft of the new bill for public review.
The New York State Department of Financial Services has proposed a draft for change in state laws that would allow it to charge licensed crypto companies for regulation of them.
Moreover, it seems like strange proportions under Financial Services Law(FSL); it is quite common for the New York State Department of Financial Services to charge licensed non-crypto financial entities for the cost and expenses of monitoring them.
Superintendent Adrienne Harris is a major drafter and supervising official behind the draft submitted. On December 1, 2022, Harris noted on the official website of DFS that the draft is submitted for public review for the upcoming ten days.
The DFS Superintendent aims to line up virtual currency businesses like other regulated financial entities in the state. However, Financial Services Law did not have any provision for crypto companies when it adopted crypto regulations in New York in 2015.
Adrienne highlighted that these “regulations will allow the Department to continue adding top talent to its virtual currency regulatory team.”
“Through licensing, supervision and enforcement, we hold companies to the highest standards in the world,” Adrienne added, “the ability to collect supervisory costs will help the Department continue protecting consumers and ensuring the safety and soundness of this industry.”
The draft’s proposal states that DFS will charge according to the total operating expense of supervising licensees and the “proportion deemed just and reasonable” for other operating and overhead expenses.”
Most importantly, it is noted that the charges will be divided into five small amounts and can be paid in a time duration of the financial year. The charges for all the entities will differ according to the expenses.
The collapse of the FTX exchange has troubled the whole crypto market. Most digital assets have traded to their lowest prices, and many companies with connections or funding in FTX have filed for bankruptcy.
Sam Bankman-Fried was the founder of FTX and was one of the youngest billionaires on the Forbes list some of the believers called Bankman the upcoming Warren Buffett.
The event was quite surprising for the crypto sector because the globally renowned crypto and third biggest crypto exchange valued at $32 billion crashed in just 48 hours.
As per some reliable reports, more than a million people have lost their life savings after the collapse of FTT, the native token of FTX, which ultimately resulted in the explosion of FTX and forced the firm to file for bankruptcy.
Source: https://www.thecoinrepublic.com/2022/12/02/new-draft-bill-seeking-to-charge-crypto-firms-for-investigation/