February 6, 2025
New York finance regulator tightens crypto listing guidance

Guidelines for cryptocurrency listings and delisting companies in New York State have been tightened to better protect investors, according to the state’s financial regulator.

New York State Department of Financial Services (NYDFS) unveiling The new restrictions on November 15 require cryptocurrency companies to submit their token listing and delisting policies for NYDFS approval.

Company policies will be measured against more stringent risk assessment standards set by NYDFS to protect investors. The technology, operations, network security, market, liquidity and illegal activity risks of tokens are factors that NYDFS needs to consider.

The upcoming changes apply to all digital currency business entities licensed under New York State statutes, rules and regulations or limited purpose trust companies under New York State banking laws. NYDFS initially called for public feedback on the proposal in September.

Cryptocurrency companies that have previously approved a token listing policy may not self-certify any tokens until they have been submitted to and approved by NYDFS.

between enterprise Those that must comply with the new rules include stablecoin issuer Circle, cryptocurrency exchange Gemini, fund management company Fidelity, trading company Robinhood and payments giant PayPal.

All affected companies must meet with NYDFS by December 8, 2023, to preview their draft token listing and delisting policies, and submit them by January 31, 2024.

related: New York’s Museum of Modern Art now has tokenized art in its permanent collection

Financial services chief Adrienne A. Harris said the financial regulator will implement “innovative and data-driven approaches” to oversee token listings, delistings and cryptocurrency markets more broadly.

Harris emphasized that the new rules are not part of a statewide crackdown on the cryptocurrency industry:

“(We want to) ensure that New Yorkers have a well-regulated way to enter the virtual currency market and that New York remains at the center of technological innovation and forward-thinking regulation.”

In February, NYDFS said it expanded its ability to identify illegal activity related to cryptocurrencies, such as insider trading and market manipulation.

According to an August report from Coinbase, approximately 690 blockchain-based companies are headquartered in New York, while 19% of New Yorkers own cryptocurrencies.