Under the latest New York Department of Financial Services guidance, custodians are required to "separately account for and segregate customer virtual currency from the corporate assets."
NYSDFS' Harris claims that New York's regulatory initiatives on digital assets and related products proved to be effective in safeguarding investors, thus the need for it to be adopted nationwide.
Gov. Gavin Newsom nixed the bill, which would have created a licensing regime for VASPs similar to New York’s BitLicense, calling for a more flexible approach.
The bill was passed by the state’s Senate and the Assembly this week and heads to the governor’s desk, who has until September 30 to approve it into law or veto it.
The DFS says the guidance should act as the baseline set of requirements that companies within New York State that have either issued, or would like to issue, dollar-backed stablecoins must follow.
PayPal has been operating with a conditional BitLicense from the NYDFS since October 2020 but has now become fully licensed in a move the company says is very big for Web3.
Digital currency firms that hold a BitLicense are now required to pay an assessment fee; this new order was included in the state's FY2023 budget that came into law last April 9.
The New York financial watchdog was assigned the responsibility of developing a new assessment mechanism for VASPs in the state’s new budget for 2023.
Kathy Hochul, the new governor of New York, has nominated former Obama official Adrienne Harris to head up the New York Department of Financial Services.
The agency said the license would now enable Bakkt to support customers in New York in buying and selling digital currencies and other digital assets.
The New York Department of Financial Services granted a charter to GMO-Z.com Trust Company Inc. to issue the GYEN stablecoin in the state.
The NYDFS is now granting conditional BitLicenses, partnership opportunities, and has updated their policies.
