New York Department of Financial Services (NYDFS) Revises Virtual Currency Framework
The New York Department of Financial Services (NYDFS) has made significant changes to its virtual currency framework, resulting in the removal of XRP, Dogecoin, Litecoin, and others from the state’s “greenlist.” The greenlist previously included 25 approved tokens, including Bitcoin, Ethereum, Dogecoin, Litecoin, XRP, and PayPal Dollar. However, after the recent revision, only eight tokens remain on the list. Notably, Bitcoin and Ethereum are the only non-pegged coins on the list.
Implications for XRP, Dogecoin, and Litecoin
A spokesperson for NYDFS explained that the changes were made to align with the new general framework for greenlisted coins. The department also clarified its protocols for coin-listing and delisting for regulated entities. The revised framework includes increased risk assessment standards for coin-listing and additional requirements for businesses serving the retail sector.
According to Superintendent Adrienne A. Harris, virtual currency business entities listed on the greenlist do not require prior approval from NYDFS unless otherwise informed. However, these entities must inform NYDFS in advance and have an approved coin-delisting policy. The department maintains discretion over the contents of the greenlist.
Superintendent Harris’ Commitment to Cryptocurrency Oversight
Superintendent Harris has demonstrated a proactive approach to cryptocurrency oversight. In January 2023, NYDFS reached a $100 million settlement with Coinbase regarding compliance deficiencies. Additionally, NYDFS ordered Paxos to stop issuing Binance USD (BUSD) in February this year.
Reactions within the Crypto Space
The revised framework has received mixed reactions in the crypto community. Some expressed skepticism, questioning the political or punitive nature of the changes. Others clarified that Ripple did not lose a license in New York and emphasized that XRP, the digital asset, was simply removed from the list.
XRP is currently trading at $0.5092.
Hot Take: NYDFS Removes XRP, Dogecoin, and Litecoin from Greenlist
The New York Department of Financial Services (NYDFS) has made significant revisions to its virtual currency framework, resulting in the removal of XRP, Dogecoin, Litecoin, and others from the state’s approved token list. This move has sparked varied reactions within the crypto community. While some express skepticism and question the motives behind the changes, others clarify that this is not a license revocation for Ripple but rather the removal of XRP as an approved token. Superintendent Harris’ proactive approach to cryptocurrency oversight is evident in NYDFS’s recent actions, including a $100 million settlement with Coinbase and ordering Paxos to halt Binance USD issuance. The impact of these changes on the affected cryptocurrencies remains to be seen.
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