Published: 10.04.2022
Article reading time:
2 minutes.
The New York Senate changed legislation to allow the State Department of Financial Services (NYDFS) to collect money to control crypto companies from the crypto companies themselves.
The state parliament has authorized the NYDFS to regulate the crypto industry. The authorities of New York wrote in the draft budget for 2023 the instruction of the NYDFS to develop a new way to evaluate cryptocurrency companies, similar to the methods of auditing traditional financial institutions, banks and investment funds. To begin with, the supervisory authority must calculate the budget for the analysis of companies.
“The costs of each verification of the activities of any person who is engaged in commercial activities with virtual currencies shall be borne and paid by the regulated entity itself. However, the superintendent, with the approval of the controller, may, at the discretion of the manager, for good reason, remove these expenses from the person, ”the draft document says.
NYDFS Superintendent Adrienne Harris said the budget amendments “will revitalize the state’s economy and make New York stronger.”
“The project includes new powers to collect supervisory costs from licensed enterprises dealing in virtual currencies, as is already done with banking and insurance companies. New York was the first to license and control virtual currency companies, and we continue to attract more licensees and the largest cryptocurrency startup funding of any state in the country. The new authority will allow the Department to recruit staff with the capacity and experience to best manage and support this rapidly growing industry,” Harris said.
The new budget provisions will come into force in two months. The NYDFS is now monitoring companies that have received a BitLicense to operate. Companies that want to offer New Yorkers access to cryptocurrency trading or wallet services must obtain a BitLicense before they can provide cryptocurrency trading or custody services.
The new budget provisions will come into force in two months. The authorities of New York, unlike other US states, are very strict about the regulation of the crypto industry. In March, the NYSDEC approved a bill to ban Proof-of-Work (PoW) cryptocurrency mining for two years.
Source: Bits
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