New York Department of Financial Services has issued a new regulation to BitLicense owners that changes the way supervision costs will be assessed.
This new regulation gives the Department additional authority “to collect supervisory costs from licensed virtual currency businesses” According to a press release, the provision is part of New York’s budget for fiscal year 2023.
By 2020, only 25 companies would have a BitLicense. These included Circle, Coinbase Ripple, and Square. Blockworks has also stated that the cost of obtaining a BitLicense can reach $100,000. According to Capital Fund Law Group, Blockworks.
DFS superintendent Adrienne Harris has praised New York’s regulatory framework on digital assets. She also said that the office will be keeping an eye on future developments of virtual currency.
“This regulation provides the Department with additional tools and resources to regulate the virtual currency industry now and in the future as innovators create new products and use cases for digital assets,” Harris stated in a press release.
BitLicense owners will receive five bills in the fiscal year of 2023-2024, with four assessments per quarter. “based on the Virtual Currency Unit’s estimated annual budget at the time of the billing,” DFS Website. A final assessment will then be made at the end the year, based on actual unit expenses.
DFS has also stated that it will be requiring crypto firms to comply with its requirements. “meet rigorous standards for capitalization, cybersecurity protection, and anti-money laundering protocols, among other requirements.” It is regulated in a similar way to the banks and insurance firms.
BitLicense is a license that was initially issued in 2015. It requires cryptocurrency startups to pay for any enforcement actions they take. It is intended to build on those principles. In its announcement, the DFS said that it was announcing a new regulation. “will allow the Department to continue adding top talent to its virtual currency team to continue efficient and effective regulatory oversight.”
New York State DFS actively hunts down cryptocurrency firms that have broken the law. BitPay has agreed to give the regulator $1,000,000 after it failed to follow anti-money launderage laws and cybersecurity rules.
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