The New York State Department of Financial Services (DFS) has published proposed guidance focusing on virtual coin listing and the general framework for greenlisted coins.
This guidance builds upon the original framework issued by DFS in 2020 and clarifies the agency’s expectations regarding coin listing and delisting policies of DFS-regulated entities, the regulator said in a Monday (Sept. 18) press release.
It includes heightened risk assessment standards for coin-listing policies, tailored requirements for retail consumer-facing businesses, and the development of compliant coin-delisting policies, according to the release.
The proposed guidance also updates the DFS Greenlist, which comprises virtual coins and tokens approved for all licensees to list or for custody, the release said. DFS aims to ensure consistency and enhance regulatory standards in the virtual currency industry by aligning best practices across all entities. The proposed guidance is open for public feedback until Oct. 20.
The publication of these proposals comes as the DFS is making significant progress in strengthening its oversight of the virtual currency industry, DFS Superintendent Adrienne A. Harris said in the press release.
The agency’s program, known as the VOLT initiative, aims to solidify DFS’s role as the leading regulator of virtual currency in the nation, keep pace with industry development, and protect consumers and markets, according to the release.
“In less than two years, we’ve built our team to over 60 experienced professionals, created and enhanced consumer and industry safeguards, and engaged with policymakers around the world — including with the U.S. Congress to help ensure there is a federal prudential regulator to supervise the industry,” Harris said in the release.
As part of the VOLT initiative, DFS has also implemented new policies, procedures and assessment authority to support the growth of the virtual currency unit, according to the release. DFS has issued eight pieces of industry regulatory guidance, setting standards for stablecoins, protecting customers in the event of insolvency, and offering guidance on the use of blockchain analytics tools.
DFS has taken enforcement actions against cryptocurrency companies, resulting in penalties totaling over $132 million, per the release.
This news comes on the heels of the DFS announcement that it wants to regulate the companies that help set prescription drug costs. In that initiative, announced Aug. 16, the regulator has proposed regulations governing the conduct of pharmacy benefit managers (PBMs) operating in the state.