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NYDFS proposes to streamline coin listings for licensed virtual currency firms

State Issues NYDFS Virtual Currency Fintech

State Issues

On December 11, NYDFS issued proposed guidance to create two “coin adoption or listing options” for virtual currency licensees. According to NYDFS, these proposed guidelines are intended to provide “regulatory clarity and efficiency, and to ensure that [NYDFS’s] approach to regulating virtual currency businesses reflects the realities of an evolving market.” Recognizing that its virtual coin licensees “have asked to list new virtual currencies . . .  in addition to those included in their initial applications to [NYDFS],” NYDFS proposes, among other things, to provide a list of coins on an NYDFS web page that have been approved for permitted use. Virtual currency licensees may choose to list any of these coins as long as the licensee provides notice to the Department and the listed coins are not modified, divided, or changed after being listed on the NYDFS webpage. The proposal would also allow licensees to create their own  “company coin-listing policy” tailored to their specific business models and risk profiles that, if approved by NYDFS would permit a licensee to self-certify the listing or adoption of new coins without prior approval. According to NYDFS Superintendent Linda Lacewell, the proposal is “designed to make it easier for those who have obtained a New York license to periodically add new coins to their existing products.” The deadline for submitting comments on the proposed guidance is January 27, 2020.

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