New York State Department of Financial Services Updates Crypto Greenlist
The New York State Department of Financial Services (DFS) has provided an update on its efforts to strengthen oversight of virtual currencies. As part of this initiative, the DFS has published an updated list of approved cryptocurrencies for all licensed entities.
Entities licensed or chartered by the DFS to conduct virtual currency business in New York can now list coins on the Greenlist without needing a separate DFS-approved coin-listing policy. However, they must notify the DFS at least 10 days before offering the coin in New York.
The current Greenlist includes bitcoin (BTC), ethereum (ETH), Gemini dollar (GUSD), GMO JPY (GYEN), GMOUSD (ZUSD), Pax Gold (PAXG), Pax dollar (USDP), and Paypal dollar (PYUSD).
Changes to the Greenlist
The previous version of the DFS greenlist was longer and included cryptocurrencies approved for custody, listing, or both. The current list has been shortened and no longer includes certain cryptocurrencies that were previously approved.
In July, the greenlist included cryptocurrencies such as 0x (ZRX), aave (AAVE), bancor network token (BNT), basic attention token (BAT), Binance USD (BUSD), bitcoin cash (BCH), chainlink (LINK), dogecoin (DOGE), ethereum classic (ETC), kyber network (KNC), litecoin (LTC), livepeer (LPT), lumens (XLM), omisego (OMG), Ripple (XRP), synthetix (SNX), wrapped bitcoin (wBTC), and z.com USD (ZUSD).
Enhanced Guidance and Requirements
The DFS has introduced new guidance to enhance risk assessment standards for coin-listing policies and tailor requirements for retail consumer-facing businesses. Licensees are now required to develop and submit a coin-delisting policy that complies with the proposed guidance. The DFS is accepting public feedback on this proposal until October 20.
Hot Take: New York State Strengthens Oversight of Cryptocurrencies
The New York State Department of Financial Services continues to prioritize the oversight of virtual currencies. With the updated Greenlist, licensed entities have more flexibility in listing approved cryptocurrencies without needing a separate coin-listing policy. However, they must adhere to the notification requirement.
By shortening the Greenlist, the DFS aims to streamline its approved cryptocurrency offerings. The introduction of enhanced guidance and requirements further strengthens risk assessment and consumer protection measures.
This move by New York State demonstrates its commitment to fostering a regulated and transparent crypto industry within its jurisdiction.
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