NYDFS proposes regulation to assess costs of ‘supervision and examination’ for licensed crypto firms

The New York State Department of Financial Services (NYDFS) has proposed a rule that would allow government departments to assess the costs of supervision from licensed crypto companies operating in the state.

In a December 1 announcement, NYDFS Superintendent Adrian Harris said: Open Proposed Budget Draft for Public Comment. If approved, the regulation would empower the agency to assess the costs of oversight and inspection of businesses operating in the state with a BitLicense.

“This rating agency will allow the State Department to continue building a team that leads the country in our suite of regulatory tools,” said Harris. “The ability to collect oversight fees will help the department continue to protect consumers and ensure the safety and health of this industry.”

While some cryptocurrency companies are using BitLicense to continue operating in New York, many, including New York City Mayor Eric Adams, have criticized the measure as a difficult barrier to cross. increase. The original BitLicense application fee was $5,000, and NYDFS set specific capital requirements for its operation.

Related: NYDFS calls on cryptocurrency firms to use blockchain analytics

The proposed regulation builds on legislation signed in April that gives the NYDFS “authority to collect supervisory fees from licensed cryptocurrency businesses.” Harris said the rule will help bring regulation of cryptocurrency companies in line with what has been imposed on banks and insurance companies.

The proposal will first be open for public comment for 10 days, after which it will be open to the public for an additional 60 days after it is posted on the state registry, according to NYDFS.