New York Department of Financial Services Updates Crypto Exchange Regulations
The New York Department of Financial Services (NYDFS) has made significant changes to its regulations regarding the listing of new coins and tokens on crypto exchanges. This update now requires entities like Circle and Gemini to pause new coin certifications until they comply with the new standards set by NYDFS.
New York Restricts New Crypto Listings
As a major financial hub in the US, New York’s regulatory decisions often influence national trends, especially in financial regulation. The updated guidelines from NYDFS are expected to have broad implications for crypto trading and regulation across the country.
Under the new rules, regulated entities must submit two policies for approval: one for listing coins and tokens and another for the delisting process.
Coin Listings and Delistings
The NYDFS has set strict criteria for coin listings, including only permitting stablecoins listed on the state’s greenlist. Tokens associated with other exchanges or with a circulating supply less than 35% of the total supply are explicitly disallowed.
The guidelines also cover the process of delisting a coin, requiring exchanges to give customers adequate notice before suspending trading.
Hot Take: NYDFS’s Commitment to Consumer Safety in Cryptocurrency Trading
The recent updates by NYDFS aim to improve transparency in cryptocurrency trading and protect newcomers from scam tokens. This move underscores NYDFS’s commitment to consumer safety and a stable financial environment in the cryptocurrency market.
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