Stricter crypto rules for banks in New York
On Thursday, December 15, the New York State Department of Financial Services (NYDFS) released a new digital assets guide for banks under state supervision.
On Thursday, December 15, the New York State Department of Financial Services (NYDFS) released a new guide for digital assets for banks under state supervision. Transactions with cryptocurrencies must be approved and investigated by the authority. The guide also includes a checklist of documents and information that the involved banks must provide to the NYDFS. Based on that, an assessment will be started before approval is granted.
"It is crucial that regulators communicate in a timely and transparent way about the development of our regulatory approach." said Superintendent Adrienne A. Harris in a press release.
The agency plans to review several areas of banks. These include the business plan, risk management and governance and oversight. But also consumer protection, finance and regulatory analysis, as noted in the document.
"Today's guidelines are essential to ensure that consumers' hard-earned money is protected. To keep New York's regulated banks resilient and competitive. And to ensure that expectations are clear for those who want to file proposals for virtual currency activities," Harris said.
The guidelines are meant to lay out a clear, regulated path for financial institutions that want to offer crypto assets or trade in digital assets. Following the collapse of the FTX crypto exchange in November 2022, regulatory pressure is rising on financial services providers and banks dealing in crypto assets.
