New York Regulator to Require Higher Standards for Coin Listings and Delistings
New York’s financial regulator wants cryptocurrency companies regulated in the state to be more transparent about how they list and delist crypto coins. The New York State Department of Financial Services, in proposed guidance to be published Monday, spells out its expectations for how crypto firms evaluate a coin offering before adoption, based on a prior version of the framework. The regulator also describes its expectations of the steps and criteria a crypto firm must consider before delisting a coin.
The proposed framework is meant to guide firms on how to draft firm-specific coin listing and delisting policies. NYDFS Superintendent Adrienne Harris said the guidance was needed to make standards around coin offerings more robust, and that the updates came from deficiencies found through examinations. She also said the new guidance will be the first one about delisting.
“When we know that a coin that someone once thought was OK, when we see that new risks have emerged or the coin is being misused, we want our entities to have a way to delist the coin in a way that’s still protective of consumers and protects safety and soundness as well," she said. As part of the proposal, the NYDFS is asking virtual currency companies registered in the state to submit new coin-listing and delisting policies. The proposed legislation is open for public comment until Oct.
20. An original framework guidance issued in 2020 asked crypto companies regulated by NYDFS to submit a firm-specific coin listing policy and to seek the regulator’s approval before listing or offering custody for a coin, unless the coin is on a so-called “greenlist" of coins already approved by the regulator. The listing policy must be tailored to a company’s business
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