The new regulation will be applied to all crypto firms with a BitLicense.
The New York State Department of Financial Services (NYDFS) has introduced a regulation enabling them to evaluate licensed crypto firms’ supervisory costs.
On April 17th, the NYDFS announced the adoption of a regulation designed to cover supervisory expenses associated with overseeing licensed crypto firms operating in New York State.
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This new regulation will finance the hiring of leading professionals to join the virtual currency team at the government agency.
These supervisory costs will be collected from crypto firms with a BitLicense, which is necessary for operating in the state.
When commenting on the new regulation, NYDFS Superintendent Adrienne Harris noted:
This regulation provides the Department with additional tools and resources to regulate the virtual currency industry now and in the future as innovators create new products and use cases for digital assets.
In December 2022, the NYDFS proposed the regulation to recover costs following meetings with key stakeholders and receiving feedback. This move was prompted by the absence of a provision addressing the assessment of operating costs in the state’s Financial Services Law.
As of February 10th, the NYDFS has listed 33 crypto and blockchain companies operating in the state under a virtual currency license, limited purpose trust charter, or money transmitter license.
It is worth noting that NYDFS is the same department that went after Paxos for its BUSD token and crypto exchange Gemini.
The NYDFS’s newly adopted regulation aims to recover supervisory costs from licensed crypto firms and strengthen the department’s ability to regulate the ever-evolving virtual currency industry in New York State.
