New York Finance Regulator Tightens Crypto Listing Guidance

New York Finance Regulator Tightens Crypto Listing Guidance – New York’s financial regulator has strengthened guidelines for cryptocurrency listing and delisting by firms to enhance investor protection. On November 15, the New York State Department of Financial Services (NYDFS) introduced stricter measures, requiring crypto companies to obtain NYDFS approval for their coin listing and delisting policies.

To safeguard investors, the NYDFS will assess company policies based on heightened risk assessment standards. These standards encompass technological, operational, cybersecurity, market, liquidity, and illicit activity risks associated with tokens. The revised regulations are applicable to all digital currency businesses licensed under New York Codes, Rules, and Regulation, or limited purpose trust companies governed by the state’s Banking Law. 

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The NYDFS sought public input on this proposal in September before implementing these changes. Cryptocurrency companies with an established coin listing policy cannot independently certify tokens unless they undergo and obtain approval from the NYDFS. Stablecoin issuer Circle, crypto exchange Gemini, fund manager Fidelity, trading platform Robinhood, and payments giant PayPal are among the companies required to adhere to the new regulations.

By December 8, 2023, all impacted companies are obligated to present their preliminary coin listing and delisting policies to the NYDFS, with final submissions due by January 31, 2024. Superintendent of Financial Services Adrienne A. Harris emphasized the adoption of an “innovative and data-driven approach” for overseeing coin listings, delistings, and the overall cryptocurrency market.

Harris stressed the new rule isn’t part of a state-wide crackdown on the cryptocurrency industry: “[We want] to ensure that New Yorkers have a well-regulated way to access the virtual currency marketplace and that New York remains at the center of technological innovation and forward-looking regulation.” NYDFS announced in February an expanded capability to detect illicit activities related to cryptocurrencies, including insider trading and market manipulation.


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