The New York State Department of Financial Services (NYDFS) has instituted a new Industry Letter and Guidance Regarding Listing of Virtual Currencies. This roadmap for approval of new coin listings is a final update to draft guidance issued by NYDFS on Sept. 18, 2023, following public comments due in October.
Pursuant to the new guidance, all NYDFS-regulated virtual currency (VC) entities must meet with the NYDFS by Dec. 8, 2023, to preview their draft coin-delisting policy. Final coin-delisting policies must be submitted to the agency for approval by Jan. 31, 2024.
A few observations:
1. The final guidance includes few changes and updates reflecting industry comments, concerns, and requested clarifications except for slight adaptions based on industry comments concerning:
- Business model considerations
- Risk assessment expectations
- Advanced notice requirements
- Additional defined terms
2. The listing process still provides little certainty that any coin can continue to be listed in New York nor any precise timelines for approval and de-listing events.
3. Certain previously approved policies must be submitted for reevaluation by NYDFS and certain regulated VC entities will not be permitted to self-certify any coins until they submit to and receive approval from the agency for a coin-listing and coin-de-listing policies.
A pdf redline comparison between the September 2023 draft guidance and the final Guidance Regarding Listing of Virtual Currencies can be found here.
