New York banking regulator clarifies digital assets guidelines
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.