The New York State Department of Financial Services (NYDFS) recently announced new guidelines for the listing and delisting of cryptocurrencies. The updated guidance, called “Guidance Regarding Listing of Virtual Currencies,” was released by Superintendent Adrienne Harris following a period of public comment on the draft proposal.
The objective of the guidance is to establish higher standards for the process of listing and delisting cryptocurrencies. According to the new regulations, all New York-chartered virtual currency businesses, also known as VC Entities, are required to submit their coin-listing and coin-delisting policies for approval by the NYDFS. The agency has made it clear that no coin-listing policy will be approved without an accompanying coin-delisting policy. Failure to implement these approved policies will result in VC Entities being unable to list or delist any coins not included in the NYDFS’s “greenlist.”
Under the new guidelines, if a listed coin is found to pose an increased risk, the VC Entities must discontinue their support for that coin. Superintendent Harris explained, “This guidance demonstrates the Department’s dedication to employing an innovative and data-driven approach to virtual currency oversight, ensuring that we stay ahead of industry developments. DFS has consistently been at the forefront of virtual currency regulation, leveraging years of knowledge and experience to provide timely and relevant guidance that safeguards consumers and markets.”
The “Guidance Regarding Listing of Virtual Currencies” is effective immediately and supersedes the Prior Guidance published in 2020. All VC Entities are required to meet with the NYDFS by December 8, 2023, to present their coin-delisting policy drafts. The final coin-delisting policies must be submitted to the NYDFS for approval by January 31, 2024.
