The regulators in the Department of Financial Services (DFS) in New York have recently been reviewing their crypto policies. They concluded that they needed to update some of their rulings. This has meant creating new requirements for the listing of cryptocurrencies by crypto firms. As a result, they already removed numerous digital currencies from their greenlist. This includes crypto leaders like Litecoin, Dogecoin, and Ripple. A few digital tokens have managed to hang on, including Ether and Bitcoin.
The DFS has been making headway into crypto regulation as Congress has been slow to deal with the task. You can see its leading innovations in the virtual currency unit and BitLicense program. The crypto world has critiqued the DFS numerous times for how difficult licensing is with its program. However, we can see its new rulings in action and find that it often uses a lot of balance in its decisions. Unlike any other current regulator, they are able to go for a more subtle approach. This could hopefully inspire others to follow suit in the coming months with the greater push for regulation.
The Regulators Introduce Stricter Rules for Greenlist and Delisting
Previously, the system for getting onto this greenlist was quite different. Those applying for the list had to go through a self-certification system in order to list their tokens. This made the system straightforward while also giving the DFS a role in overlooking the process as a regulator.
Under the new rules, the regulators in the DFS wanted to be clearer on what they expected from those listing their coins. It also wanted to tighten its risk assessment of coins and the criteria for those coins that would be for retail. Overall, this is already quite different from the previous self-assessment regime. Furthermore, when licensing, firms must propose how they can delist their coins in a way that will have minimal impact on users.