New York Removes Dogecoin, XRP, Litecoin, Chainlink, and More from ‘Greenlisted Coins’
New York state’s financial regulator, the New York State Department of Financial Service (DFS), has revoked its approval on most of the digital assets that were previously listed on its “Greenlist” for crypto firms to conduct business. The Greenlist allows virtual currency (VC) entities to list or custody assets without additional regulatory requirements. However, the DFS has now removed several tokens from the list, including Ripple (XRP), Dogecoin (DOGE), Litecoin (LTC), and Chainlink (LINK). Bitcoin (BTC) and Ethereum (ETH) remain on the amended Greenlist, along with several stablecoins. The DFS retains the authority to add or remove coins from the list as it deems necessary.
Criteria for Inclusion on the Greenlist
The DFS can add a coin to the Greenlist if the asset or its issuer demonstrates a track record of safety, soundness, customer protection, and widespread adoption. The list can also feature stablecoins that have received agency approval for issuance.
Requirements for VC Entities
VC entities that choose to list any of the Greenlisted coins must notify the DFS at least 10 days in advance before offering support. They must also have a DFS-approved coin-delisting policy.
Hot Take: New York’s Revised Greenlist Creates Uncertainty for Crypto Firms
The removal of several cryptocurrencies from New York’s Greenlist introduces uncertainty for crypto firms operating in the state. While Bitcoin and Ethereum remain on the list, the exclusion of popular assets like Dogecoin and Ripple may impact businesses that deal with these tokens. Additionally, as the DFS retains full discretion over adding or removing coins from the list, crypto firms may face regulatory challenges and unpredictability in the future. This move highlights the importance of staying informed about regulatory changes and maintaining flexibility in the ever-evolving crypto landscape.
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