Coinspeaker
New York Regulator NYDFS Reviews Requirement for Crypto Coin Listings and Delistings
The New York State Department of Financial Services (NYDFS) is set to publish a new set of rules for crypto firms. The proposed guidance, per a Wall Street Journal report, will seek to ensure that crypto firms are more open about how they list and delist crypto coins.
According to the financial regulator, the guidance will look to build on the previous version of the framework. That is as it also helps firms to draft firm-specific coin listing and delisting policies.
Recall that the original framework guidance, which was issued in 2020, required crypto companies under the jurisdiction of NYDFS to submit a firm-specific coin listing policy. The same guidance also mandated such crypto firms to first secure the regulator’s approval before listing or offering custody for a coin, except for a so-called “greenlist” coin. That is, a coin already approved by the regulator.
Speaking about the new rules, however, NYDFS Superintendent Adrienne Harris has said that the regulator needed to address several deficiencies that currently exist around coin offerings. She particularly noted that the new guidance will be the first one to key into delisting as a way of protecting investors. Harris said partly:
“When we see that new risks have emerged or a coin is being misused, we want our entities to have a way to delist the coin in a way that’s still protective of consumers and protects safety and soundness as well.”
NYDFS: Expectations for How Crypto Firms Must List and Delist Coins
For crypto firms that want to list their coins, the new framework asks them to draft their policies in line with three areas. They are; governance for the coin-listing process, risk assessments of coins, and procedures to monitor coins.
In terms of delisting a coin, however, the framework requires firms to clarify how they intend to delist a coin when they decide to. It also asks them to detail the type of events that could lead to that decision, and execution plans, including customer advisory among other things.
Since Harris became New York’s top financial regulator two years ago, the agency’s crypto unit has nearly tripled in size. It currently has about 60 staff, and, under her leadership, NYDFS has levied $132 million in fines against crypto companies. That includes prominent crypto exchanges such as Coinbase and online trading platform Robinhood’s crypto unit.
New York Regulator NYDFS Reviews Requirement for Crypto Coin Listings and Delistings
