New York State issues guidance for banks seeking to engage in activities with crypto
The New York state Department of Financial Services (DFS) released guidance on Dec. 15 for regulated banks seeking to engage in activities with virtual currency. The guidance, which took effect immediately, describes the application process and “summarizes the types of information the Department considers relevant” for obtaining the agency’s approval.
The 11-page document consisted largely of bullet points as it described the informational requirements for several categories, such as “Business Plan” and “Consumer Protection,” in detail, followed by a series of formal checklists.
Approval is required 90 days before engaging in activities, the document reminded. Approval for prior activities “does not constitute general consent” for other activities, and some activities by third-party service providers may require the agency’s approval as well.
As much as it pains me to admit this, the @NYDFS Bitlicense accomplishes many of these goals; and the DFS is working closely w/ other regulators like the UK. https://t.co/q2zEJfZ3qT pic.twitter.com/8CxSX2UZ91
Furthermore, institutions that are already engaged in virtual currency activities were instructed in the statement accompanying the guidance to check in with their points of contact at the agency immediately.
DFS superintendent Adrienne A. Harris said in a statement on the new guidance:
New York is known as a tough regulator of crypto businesses, and 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 highly valuable for regulated institutions.
Related: New York’s mayor seeks balance with regulators after PoW mining
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