Countries around the globe are considering regulating crypto given increasing interest and investment in the sector. The flocking of investors demands safeguarding them and hence, agencies double down on regulations. Recently, the New York regulator reported bringing guidelines for crypto firms to comply before listing and delisting crypto tokens.
The New York State Department of Financial Services (NYDFS) came up with the “Industry Guidance” on Wednesday, November 15, 2023. These rules are meant for the listing of cryptocurrencies and are said to be enacted immediately.
According to the guidelines, crypto companies would need to get the approval of their “coin-listing policy” before listing the coin.
The regulator came up with the draft and asked for public comment in September this year.
Superintendent at NYDFS, Adrienne A. Harris, stated that the crypto listing or delisting guidelines came in the wake of efforts to solidify safety measures for cryptocurrency investors across the region.
In addition to the approval from the agency, the policies of related firms will be measured through strict risk assessment standards. It will take care of the delisting process to take place in a manner that will cause the slightest disruption in the market and protect consumers.
NYDFS Superintendent Adrienne Harris emphasized that this step enables approved virtual currency business activities within the state or catering to New Yorkers.
The regulator outlined that cryptocurrency firms lacking NYDFS-approved coin-listing policies are restricted to tokens included in their “greenlist” unless otherwise authorized. The approved coin-listing policy, as per guidance, must encompass comprehensive procedures tailored to the crypto firm’s unique business model, operations, customer base, counterparties, geographical reach, and service providers.
The specified areas include governance, risk assessment, and ongoing monitoring of listed coins.
Crucially, the guidance mandates that if a listed coin is identified as presenting heightened risk, crypto firms must promptly cease support for that coin. To further enhance regulatory oversight, all entities are required to draft a coin-delisting policy by December 8, 2023. The finalized version must then be submitted to NYDFS for approval by January 31, 2024.
NYDFS has been actively involved in regulating the cryptocurrency industry in recent years, underscoring its commitment to fostering a secure and compliant environment for virtual currency businesses. These newly established guidelines signify a proactive approach by the regulator to address potential risks associated with coin listings, reflecting the evolving landscape of the cryptocurrency market.
As the industry continues to garner attention and participation, regulatory frameworks play a pivotal role in safeguarding investors and maintaining the integrity of virtual currency operations.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
Source: https://www.thecoinrepublic.com/2023/11/16/new-york-regulator-issues-guidance-for-crypto-listing-or-delisting/