Crypto News: New York Department Of Financial Service Isues Crypto Guidance To Banks

New York state Department of Financial Services (DFS) on December 15 published guidelines for regulated banks looking to participate in Crypto activities.

iexclusivenews reports that the advice outlines the application procedure and “summarizes the types of information the Department considers relevant” for obtaining the agency’s approval. It became effective right away.

This online news outlet understands that the 11-page document detailed the “Business Plan” and “Consumer Protection” requirements.

The document reminded readers that approval is required 90 days before engaging in activities.

Prior approval “does not constitute general consent” for other activities, and some activities by third-party service providers may also require agency approval.

Furthermore, institutions that are already engaged in virtual currency activities were instructed in the accompanying statement to immediately contact their points of contact at the agency.

DFS superintendent Adrienne A. Harris said in a statement on the new guidance:

“It is critical that regulators communicate in a timely, transparent manner about the evolution of our regulatory approach.”

New York as a tough regulator of crypto businesses, has come under criticism from New York City Mayor Eric Adams. And many others for stifling economic innovation and growth.

Harris has defended the state’s approach vigorously. In light of this, detailed guidance may be extremely beneficial to regulated institutions.

When it introduced its BitLicense in 2014, New York was one of the first states to license virtual currency activities.

In addition, in June, it claimed to be the first state to impose strict requirements for stablecoin reserves and redeemability.

However, iexclusivenews Nigeria reports that under new powers granted to the agency in April. The state proposed adding an annual assessment fee for licensed crypto firms in December.