Superintendent Harris announced today final adoption of the assessment regulation. Quick takeaways:
• The adopted regulation effectuates legislation in the NYS FY23 Budget giving DFS authority to collect supervisory costs from licensed virtual currency businesses, similar to other licensees regulated by DFS.
• Says DFS: “As stewards of others’ assets, virtual currency entities play an important role in the financial system and, therefore, a comprehensive and safe regulatory framework is vital to protecting customers and preserving trust.”
• The regulation contains a provision allowing for special assessments arising out of a “specific examination, investigation or review” — in other words, the Department theoretically could assess a licensee for imposition of a monitor, something it sought to do over a decade ago in the Standard Chartered matter.
• DFS asserts the regulation “will allow the Department to continue adding top talent to its virtual currency team to continue efficient and effective regulatory oversight.”