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Dec 15, 2022 - Economy

New York banking regulator clarifies digital assets guidelines

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Adrienne Harris, superintendent of New York State Department of Financial Services (DFS

Adrienne Harris, superintendent of New York State Department of Financial Services (DFS) Photo: Christopher Goodney/Bloomberg via Getty Images

Banks licensed in New York were handed a checklist of submission requirements for the state's regulator if they want to do business in crypto.

What's happening: The New York State Department of Financial Services (NYDFS) on Thursday clarified guidelines for regulated banks that wish to start any crypto operations, asking them to submit a business plan to the regulator at least 90 days prior.

Why it matters: New York, home of the BitLicense, is already a place crypto firms bypass because of strict, existing mandates to operate.

  • Today's fresh guidance is the first move DFS has made to clarify requirements for crypto activities since FTX's collapse.

What they're saying: Superintendent Adrienne Harris in a press statement emphasized how critical the guidelines would be in "ensuring that consumers’ hard-earned money is protected," and regulated banks "remain resilient and competitive."

Details: While today's guidelines draw heavily on the state's existing framework, they provide additional information on exactly how institutions may seek approval.

  • It comes come with a checklist of required information for review, covering business plans, risk management, corporate governance and oversight, consumer protection, financials, and legal and regulatory analysis.
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