New York Department of Financial Services (NYDFS) plans to update BitLicense terms for the first time in 5 years, currency exemption list + listing template

The New York Department of Financial Services (NYDFS) plans to update the terms of its virtual currency license for the first time in 5 years.

Image source: Pixabay

NYDFS has published proposed guidelines on the adoption or issuance of virtual currencies on its website on December 11, inviting all interested parties and the public to comment by January 27, 2020.

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Two main listing rules may be updated soon

According to the official announcement, the newly proposed guidelines for listing currency specifically involve BitLicense. BitLicense is a major cryptocurrency business license that defines operating rules related to cryptocurrency, asset management, and administrative management.

Specifically, this new guideline includes two major updates regarding the process of launching new coins for crypto-related companies in New York State:

Proposal 1: NYDFS will provide a list of currencies, and businesses do not need to obtain prior permission from the institution to carry out business activities related to these virtual currencies.

Proposal 2: Propose a listing template framework that can be implemented to create a list of specific currencies or adopt policies. NYDFS states that if the guidelines are approved, in addition to the currencies listed in proposal 1, it will also allow licensees to self-certify the listing or adoption of new currencies.

NYDFS action aims to improve regulatory transparency and efficiency

According to the statement, since the release of this proposed regulatory framework in 2014, NYDFS has not updated the rules in the license since the summer of 2015. NYDFS states that the upcoming update is designed to provide regulatory clarity and efficiency, while ensuring that NYDFS's approach to regulating cryptocurrency-related businesses "reflects the realities of a changing market."

To date, NYDFS has been working to provide greater efficiencies for the state's cryptocurrency ecosystem as the company has so far granted up to 24 BitLicense licenses, including important cryptocurrency companies such as Coinbase and Circle.

According to reports, in early October, NYDFS hired an expert with expertise in the field of virtual currencies and blockchain. According to the announcement, NYDFS hopes to hire a deputy director in the research and innovation department to be responsible for policy decisions and supervision of emerging and innovative markets.

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