Recent developments about the New York State Department of Financial Services
(Not affiliated with NYDFS; just a blog.)
At the Chainalysis Links 2023 conference, the WSJ reported that Superintendent Harris stated that the crypto industry must still mature in compliance: “Speaking more broadly about the crypto industry, Ms. Harris said the sector still lacks maturity in its compliance programs even as it has grown in prominence. During many of the NYDFS’s examinations and … Read more
In submitting its Objection to the Third Amended Plan of Reorganization of bankrupt crypto firm Voyager, DFS argues that New York account holders of Voyager are disadvantaged in the plan and should be able to obtain their holdings much sooner, and not after acquisition of them by Binance, because “there is no reasonable basis for … Read more
Law360 reports that NASDAQ will be jumping into the crypto custody business for institutional investors. NYDFS will be reviewing their application, according to Law360. Coindesk reporting on this may be found here: https://www.coindesk.com/business/2022/09/20/nasdaq-starts-crypto-custody-services-for-institutional-clients/
The New York State legislature and Governor Hochul enacted a new law that allows NYDFS to assess licensed crypto businesses in the same manner it assesses other regulated entities. Each regulated entity must pay a yearly assessment to NYDFS that, in aggregate, funds NYDFS operations. NYDFS does not rely on taxpayer funds and does not … Read more
Xapo has informed DFS of its business decision to conclude its virtual currency business in New York. Effective January 11, 2022, Xapo surrendered its New York virtual currency license issued under 23 NYCRR Part 200. Xapo said: “Serving the U.S. market would require quite a lot of effort, time and investment, it would require a … Read more
NYDFS announced a $3 million settlement with Pacific Life Insurance Company for engaging in the pension risk transfer business in New York without being licensed. NYDFS maintains its long-term focus on penalizing financial companies that conduct business in New York without the necessary license; this is construed as an unfair competitive advantage by the regulator. The resolution may be found here:
https://www.dfs.ny.gov/system/files/documents/2021/12/ea20211221_co_pacific_life.pdf