The New York State Department of Financial Services (NYDFS) has proposed guidelines to ensure transparency in the evaluation process for listing and delisting cryptocurrency on trading platforms.
For beginners, centralized crypto exchanges are generally the first point of contact with crypto tokens. As newbies are unaware of the happenings in the massive realm of cryptocurrency, they might invest unwittingly in scam tokens listed on a particular exchange and lose their trading capital.
NYDFS Crypto Listing/Delisting Guidelines Open for Feedback
According to the WSJ, NYDFS has proposed a framework for crypto firms to help them draft “firm-specific coin listing and delisting policies.” Nonetheless, the regulator will be seeking public opinions on this proposal until Oct. 20.
It is worth mentioning that the NYDFS first issued the framework guidelines in 2020 for coin listing policies. However, now the guidelines would also include a delisting framework.
With these policies, NYDFS wants to establish a specific framework for the delisting of crypto tokens to avoid sudden losses to investors. Adrienne Harris, the Superintendent at NYDFS, explained:
“When we know that a coin that someone once thought was OK, when we see that new risks have emerged or the coin is being misused, we want our entities to have a way to delist the coin in a way that’s still protective of consumers and protects safety and soundness as well.”
Moreover, according to Fox Business journalist Eleanor Terrett, the NYDFS will no longer allow crypto companies to self-certify the listing of new tokens.
Some X (Twitter) users believe that it is a positive development. A user wrote:
“That’s good news, the market will no longer be run by scammers.”
However, some seem unhappy with the involvement of the regulators. One DeFi enthusiast made a sarcastic remark:
“Can’t wait for CEXs to pour into our state, now that a core business process has been taken over by our world-renowned civil servants. Super pumped!”
Click here to learn more about the 13 best no-KYC crypto exchanges.
New York’s Initiatives for Crypto Regulation
In recent times, there have been multiple crypto-related developments in New York. For example, the state proposed a bill to allow stablecoin payments for bail bonds in May 2023.
In the same month, New York Attorney General Letitia James pitched strict crypto regulations for investors’ protection. Along with other rules, the CRPTO (Crypto Regulations, Protection, Transparency, and Oversight) Act focuses on tackling fraud and mandating independent auditing of crypto companies.
Click here to learn more about the benefits and drawbacks of crypto regulations.
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