With the forfeiture of BitLicense, which it held since 2018, over violation of cybersecurity regulations, Genesis Global Trading will no longer be able to provide digital asset service in New York.
The 57-page report poked holes in the state Department of Financial Services’ management of BitLicense, including the lack of thoroughness on security checks of potential BitLicensees and a gap in filing anti-money laundering risk assessments.
On November 15, New York DFS issued the final version of its "Guidance Regarding Listing of Virtual Currencies" for entities approved to operate in New York under the BitLicense program.
A recent report on the “Trends in Regulation of Digital Assets” covers global trends in regulation, with a particular focus on U.S. developments.
The hearing by New York regulators examined the “transparency and security of the cryptocurrency industry and potential improvements as they relate to investor and consumer protection.”
First proposed in December, the new regulation was adopted this week and allows the New York Department of Financial Services to charge BitLicense holders for supervision—a practice common in finance.
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.
