The first regulator of New York will now determine which firm is allowed to listing or delist a cryptocurrency.
The New York State Division of Monetary Companies (NYDFS) has unveiled a brand new set of “heightened requirements” for itemizing and delisting cryptocurrencies because the market “has advanced sufficiently.”
In a press release on Nov. 15, NYDFS Superintendent Adrienne A. Harris said that licensed crypto companies in search of itemizing of a token must submit their itemizing and delisting insurance policies and obtain approval from NYDFS. The regulator famous it “won’t approve a coin itemizing coverage absent an accompanying coin delisting coverage.”
Crypto companies may listing a particular set of cryptocurrencies with out itemizing and delisting insurance policies, however this solely applies to these cash included on the NYDFS greenlist. As of press time, the listing consists of Bitcoin (BTC), Ethereum (ETH), and 6 stablecoins.
Earlier than itemizing a cryptocurrency, the brand new guidelines additionally require crypto companies to guage a number of dangers, comparable to regulatory, operational, authorized, cybersecurity, and conflicts of curiosity.
With the up to date regulatory regime, crypto exchanges are barred from itemizing privacy-focused cryptocurrencies with out prior approval, saying that “if a coin is designed or considerably used to avoid legal guidelines and laws, or has options designed to facilitate the obfuscation or concealment of the id of a person or entity, it can’t be self-certified.”