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New York BitLicense ups customer service requirements for digital asset firms
The new mandatory DFS requirements are to be implemented as a response to some digital asset firms' not taking the common measures as part of BitLicense standards.
The new mandatory DFS requirements are to be implemented as a response to some digital asset firms' not taking the common measures as part of BitLicense standards.
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.
To avoid the recurrence of implosions recorded in 2022, New York is keeping close tabs on the digital asset sector and carrying out system upgrades to detect illegal activities in the space.
The New York DFS announced that it had reached a $100m settlement with Coinbase after a probe identified failures in its AML program, including its KYC/customer due diligence (CDD).
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.
The finance department says the details of its plans are yet to be decided, but with the incoming government's blessings, it intends to have fully implemented the tax clarity proposals by 2024.
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 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.
All companies, including those involved in digital currency and Bitcoin mining, should begin to assess risks posed by climate change, and to take steps in mitigation, according to the NYDFS.
PayPal plans to expand its digital currency service offering to Venmo users as well as the 26 million merchants who use PayPal beginning in early 2021.