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New York regulator tells banks to get prior approval for crypto activities

New York regulator tells banks to get prior approval for crypto activities

New York State-regulated banks will need to get prior approval from regulators ahead of any virtual currency-related activities.

In newly-published guidance, the New York Department of Financial Services (DFS) says banks need to let it know about its virtual currency plans at least 90 days before commencing the activity. The rules apply even if any portion of those activities are to be conducted by a third party.

The DFS will then assess the plan based on six broad categories: business plan; risk management; corporate governance and oversight; consumer protection; financials; and legal and regulatory analysis.

As for banks already engaging in virtual currency-related activities, they must immediately notify a point of contact at the department, which will seek further information or clarification and impose supervisory requirements, as needed.

DFS Superintendent Adrienne Harris says: "Today’s Guidance is critical to ensuring that consumers’ hard-earned money is protected, that New York regulated banking organisations remain resilient and competitive, and that the expectations are clear for those that wish to submit proposals for virtual currency-related activity."

Read the guidance: Download the document now 304 kb (Chrome HTML Document)

Comments: (1)

Bhavesh Kumar
Bhavesh Kumar - TCS - Bangalore 15 December, 2022, 16:47Be the first to give this comment the thumbs up 0 likes

"Consumers’ hard-earned money is protected" should be sole motto for this regulation ,  as virtual currency is not backed by any economic fundamental.

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