The Cryptocurrency Regulation, Protection, Transparency, and Supervision Bill (CRPTO) will be submitted to the New York State Senate and Assembly by June 8. According to the document, the New York Attorney General’s Office will be able to issue subpoenas to cryptocurrency firms, as well as impose administrative fines of $10,000 to individuals and $100,000 to companies working with digital assets. Prosecutor Letitia James has expressed her intention to shut down organizations suspected of fraud and illegal activities.
The bill requires crypto exchanges to conduct an independent audit and indemnify customers affected by fraud. Cryptocurrency platforms will be required to implement KYC (“Know Your Customer”) procedures, and the use of the word “stablecoin” in the sale of digital assets will be prohibited unless stablecoins are pegged to the US dollar or other fiat currency at a ratio of 1:1.
The bill will strengthen the authority of the New York State Department of Financial Services (NYDFS), which issues a BitLicense to crypto companies to operate in the state.
A few days ago, the NYDFS fined cryptocurrency exchange BitFlyer $1.2 million for violating cybersecurity regulations.
In recent years, the New York Attorney General’s Office has repeatedly warned the public about the risks associated with investing in cryptocurrencies. In December, the agency proposed to ban investments in crypto assets from pension funds.
Source: Bits
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