The New York State Department of Financial Services (NYDFS) has instituted a new Industry Letter and Guidance Regarding Listing of Virtual Currencies. This roadmap for approval of new coin listings is a final update to draft guidance issued by NYDFS on Sept. 18, 2023, following public comments due in October.
Pursuant to the new guidance, all NYDFS-regulated virtual currency (VC) entities must meet with the NYDFS by Dec. 8, 2023, to preview their draft coin-delisting policy. Final coin-delisting policies must be submitted to the agency for approval by Jan. 31, 2024.
A few observations:
1. The final guidance includes few changes and updates reflecting industry comments, concerns, and requested clarifications except for slight adaptions based on industry comments concerning:
- Business model considerations
- Risk assessment expectations
- Advanced notice requirements
- Additional defined terms
2. The listing process still provides little certainty that any coin can continue to be listed in New York nor any precise timelines for approval and de-listing events.
3. Certain previously approved policies must be submitted for reevaluation by NYDFS and certain regulated VC entities will not be permitted to self-certify any coins until they submit to and receive approval from the agency for a coin-listing and coin-de-listing policies.
A pdf redline comparison between the September 2023 draft guidance and the final Guidance Regarding Listing of Virtual Currencies can be found here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
