NYSDFS Mulls Changes to BitLicenses

Superintendent of Financial Services Linda A. Lacewell announced today that the New York State Department of Financial Services (DFS) has proposed a new regime for listing of new coins by licensed virtual currency firms. This is the first step in DFS’s review of New York’s BitLicense in an effort to respond to changes in the marketplace over the past four years.

“New York is the center of both innovation and consumer protection, and the Department must strive to deliver speed to market and continually adapt to keep pace as the financial services industry continues to rapidly evolve,” said Superintendent Lacewell. “This is an important first step in our review of our virtual currency regime and is designed to make it easier for those who have obtained a New York license to periodically add new coins to their existing products.”

In the proposed guidance, DFS seeks comment from all interested parties and the general public regarding two proposed changes affecting coin-listings:

• Coins that the Department approves for permitted use will be listed on DFS’s website and any virtual currency licensee may choose to list any of these coins provided the licensee gives notice to the Department; and
• The Department will provide a proposed model framework for the creation of company coin-listing policies. An existing licensee should tailor the model framework to its own operations and risk profile and submit a proposed coin-listing policy for DFS approval. Upon approval, the company may self-certify the listing of new coins on an ongoing basis, consistent with the company’s approved policy, with prior notice to the Department and without the need for prior approval.

Comments related to the proposed guidance should be submitted by January 27, 2020, to innovation@dfs.ny.gov with the subject line: “Proposed Coin Listing Policy Framework.” Thereafter, DFS will release final guidance.

A full copy of the proposed guidance is available on the DFS website.

Additional information about DFS’s regulation of New York’s virtual currency marketplace can be found on the DFS website.