As the era of regulation kicks into high gear after the most recent digital currency market implosion, the New York State Department of Financial Services (NYDFS) has proposed a change in state laws to charge digital currency firms costs related to regulating them.
The proposed law would not unfairly target digital currency firms. It is already the norm for the department to charge other firms costs linked to overseeing and licensing them. The charges would be based on the total cost of regulation plus a “proportion seemed just and reasonable” for other expenses.
The proposed change is being led by Superintendent Adrienne Harris who announced it on the department’s website. She is looking for feedback over the next 10 days.
“Through licensing, supervision, and enforcement, we hold companies to the highest standards in the world,” she said.
New York continues to enforce the law
If there’s one state in the U.S. that lays waste to the mantra that ‘code is law’ again and again, it’s New York. The state continues to show that government agencies and regulators have jurisdiction over the industry and can enforce laws agreed upon by democratically elected governments.
In early 2021, the Empire State fined Bitfinex and Tether $18.5 million and forced them to cease all trading activities with New Yorkers while submitting to regular checks with the OAG to ensure compliance with the order.
“Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” Attorney General Letitia James said at the time.
In November, Governor Kathy Hochul kicked out proof-of-work block reward miners, only allowing those that use 100% renewable energy to operate in the state.
Regulations keep coming, and they’re about to speed up
For a few years now, CoinGeek has been reporting on a trend that’s only picking up pace: regulations are coming, and they will change the face of the industry forever.
With the European Union proposing laws that would ban anonymous transactions and SEC Chairman Gary Gensler vowing to end the ‘Wild West’ era in the digital currency sector, those who were paying attention figured out long ago that things were going to change.
With the collapse of digital currency hedge fund Three Arrows Capital (3AC) and the subsequent LUNA/UST implosion, followed by the more recent collapse of offshore exchange FTX, regulators have their sights firmly locked on the digital currency industry, and they can’t afford to drag their feet any longer.
As soon-to-come regulations push out the dirty money and criminal players that have dominated the industry for too long, they’ll allow the true potential and purpose of blockchain technology to finally shine.
Smart developers, investors, and VCs should prepare for the new era and plan accordingly. Bitcoin SV is ready to shine in this era of utility, legal compliance, and progress.
Watch: The BSV Global Blockchain Convention panel, Law & Order: Regulatory Compliance for Blockchain & Digital Assets
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