NYDFS Introduces Guidelines for Cryptocurrency Exchange Listings & Delistings

The New York State Department of Financial Services (NYDFS) has implemented robust standards for the listing and delisting of cryptocurrencies, reflecting the maturation of the crypto market. NYDFS Superintendent Adrienne A. Harris announced these “heightened standards” on November 15, emphasizing the need for crypto businesses to adhere to new policies.

Listing and Delisting Policies:

Under the new regulations, licensed crypto businesses must submit comprehensive listing and delisting policies for approval by NYDFS. Notably, the regulator will not approve a coin listing policy without a corresponding coin delisting policy. While crypto businesses can list specific cryptocurrencies without these policies, this exception is limited to coins on the NYDFS greenlist, which currently includes Bitcoin (BTC), Ethereum (ETH), and six stablecoins.

Risk Assessment:

Crypto businesses must conduct a thorough risk assessment, covering regulatory, operational, legal, cybersecurity, and conflicts of interest factors, before listing a cryptocurrency. This proactive evaluation aims to enhance transparency and mitigate potential risks associated with listed assets.

Privacy-Focused Cryptocurrencies:

The updated regulatory framework explicitly prohibits crypto exchanges from listing privacy-focused cryptocurrencies without prior approval. The NYDFS states that any coin designed to circumvent laws, facilitate identity obfuscation, or conceal the identity of individuals or entities cannot be self-certified.

These measures signify a proactive approach by NYDFS to ensure a secure and compliant environment within the evolving cryptocurrency market.

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