According to Blockworks, the New York State Department of Financial Services (NYDFS) has issued new listing guidance on cryptocurrencies. The updated guidance comes after a feedback period that began in September and aims to ensure higher risk assessment standards for coin listing policies while enhancing previous requirements for consumer-facing firms. The NYDFS now requires companies to submit a coin delisting policy that is compliant with the guidance, ensuring an orderly process in case a coin must be delisted, protecting consumers, and minimizing market disruption.
The department received extensive feedback highlighting the need for more retail consumer protections, including prohibiting self-certification for certain cryptocurrencies. Respondents also requested tailored risk assessments for crypto firms, allowing for specific assessments relevant to their businesses. Concerns were raised about advance notifications for coin delistings, which may not always be possible. The updated guidance provides limited exceptions to advance notification requirements based on exigent circumstances. Clearer definitions were also requested, and the NYDFS claims to have complied with this request.
Crypto companies must now submit both a coin listing and delisting policy for approval from the department. The policy must include robust procedures addressing all steps involved in removing support for a coin and be tailored to the company's specific business model, operations, customers, counterparties, geographies of operations, service providers, and the use, purpose, and specific features of coins being considered. Superintendent Adrienne Harris stated that the guidance continues the department's commitment to an innovative and data-driven approach to virtual currency oversight, keeping pace with industry developments.