(Bloomberg) -- Crypto firms in New York are facing stiffer requirements for listing coins as part of a bid by the state to boost oversight.
Virtual currency companies licensed or chartered by the state must give regulators a heads up on coins they plan to offer, even if they’re included on a the New York State Department of Financial Services’s approved greenlist, the regulator said on Monday.
The regulator also unveiled a plan for more stringent risk-assessments when listing new coins and tougher requirements for consumer-facing products. The proposal, which the public can now weigh in on, would also require crypto companies to obtain DFS approval for policies around coin delistings.
New York and other states are under pressure to bolster oversight of financial technology and crypto firms. DFS has been at the center of efforts in the US to regulate digital assets since New York’s BitLicense rules were issued in 2015.
Adrienne Harris, the DFS superintendent, said the updated plan is meant to “keep pace with industry developments to protect consumers and markets.” It forms part of an ongoing initiative around virtual currency regulations, Harris said in her statement.
New York’s approach faced increased scrutiny earlier this year after the collapse of Signature Bank, which was regulated by the state and had crypto clients. In response, Harris has said that Signature’s collapse wasn’t related to digital assets, but rather a run by a broad base of depositors across business sectors.
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