The New York Department of Financial Services (NYDFS) can now establish a crypto regulatory structure. The NYDFS received new authorization following the Senate’s passage of the 2023 fiscal budget provision in its last sitting. The NYDFS can develop a new policy to assess crypto firms within its jurisdiction through this provision. The NYDFS regulates all crypto-related activities in New York and became famous following its approval of BitLicense.
More Power, More Responsibilities
Given its new responsibility, the top state regulator must now ensure that it monitors and regulates digital assets similar to how it monitors the traditional financial institutions. One aspect of the provision that sparked huge debate was the bearer of the expenses for the regulator’s assessment.
Hence, the provision clearly states that “the person being examined will be responsible for all expenses associated with the regulator’s assessment process.” NYDFS chief, Adrienne Harris, commented that this new development would hugely benefit the state’s economy.
She added that “New York was among the first US states to adopt crypto and create a detailed regulatory policy for it. Any crypto firm willing to run its operations must obtain the state-issued BitLicense approval.”
Crypto Industry Experts Are Against The Bitlicense Regime
While the New York state BitLicense was for consumer protection, many experts have condemned its restrictions. They claimed that many top crypto exchanges have been unable to register with the state regulator because of the stringent requirements. Hence, many industry leaders, including Bill Ackman, opined that there is a need to review the BitLicense framework.
Despite the criticisms surrounding BitLicense, there aren’t many states like New York that have been receptive to cryptos. The state’s crypto regulatory framework is one of the most detailed among any other state. Also, many crypto companies continue to be attracted to the state as it has gained a reputation for being a top financial hub.
While there are several virtual asset service providers in New York, crypto miners aren’t left behind. However, crypto miners’ problems have been ongoing protests by legislators and environmental activities over the last couple of months.
Hence, the state lawmakers are reviewing a bill proposal suggesting a 3-year pause on crypto mining operations in the state. Also, state regulators have yet to approve the mining operations expansion of popular mining firm, Greenidge Generation.
Irish Regulator To Start Reviewing Crypto Ads
The crypto industry faces criticisms and strict regulation at the state and federal levels of different countries globally. Recently, Ireland’s top advertisement regulator (the Advertisement Standards Authority) revealed that it would start reviewing crypto ads before they are aired in any media targeted at Irish citizens.
According to the regulator, the move became necessary following a barrage of messages from concerned citizens, citing that many crypto ads are frauds. The regulator further stated that Ireland’s lack of regulatory clarity about crypto had made its citizens the target of crypto ads from overseas crypto firms. The number of such crypto ads has risen to alarming levels recently.