New York Revamps Crypto Exchange Listing Rules

The New York Department of Financial Services (NYDFS) has recently revamped its crypto exchange regulations, putting an end to the self-certification process for new coins and tokens.

New York Revamps Crypto Exchange Listing Rules For Consumer Safety_65b97bdde922a.webp

The New York Department of Financial Services (NYDFS) has recently overhauled its regulations for crypto exchanges, discontinuing the practice of self-certification for new coins and tokens. This change affects entities such as Circle and Gemini, requiring them to pause new coin certifications until they align with the updated NYDFS standards.

With New York serving as a financial hub in the United States, these regulatory changes are anticipated to influence national trends in financial regulation, particularly in the crypto space. The new guidelines mandate regulated entities to submit two policies for approval—one outlining the coin and token listing process and the other detailing the delisting process.

new york revamps crypto exchange listing rules for consumer safety 65b97bddeb79c

The detailed and specific guidelines necessitate exchanges and service providers to evaluate factors like token technology, use cases, and safety. Oversight roles for governing authorities, typically boards of directors, must be clearly defined, and these bodies are required to approve and periodically review these policies.

The NYDFS has established stringent criteria for coin listings, restricting stablecoins to those listed on the state’s greenlist, which currently comprises eight coins, six of them stablecoins. Tokens associated with other exchanges or bridged from their native chain are explicitly disallowed, as are tokens with a circulating supply of less than 35% of the total supply.

new york revamps crypto exchange listing rules for consumer safety 65b97bddf1e1c

The guidelines also cover the delisting process, requiring exchanges to provide adequate notice to customers before suspending trading and informing the firm’s governing body. The NYDFS retains the authority to order the delisting of an asset, emphasizing the need for firms to be prepared for such occurrences.

Related: How India’s Controversial Crypto Tax Policy Has Failed

NYDFS Superintendent Adrienne Harris emphasized the importance of adapting to evolving risks and protecting consumers. The updates aim to enhance transparency in cryptocurrency trading, ultimately safeguarding newcomers from potential scam tokens. Overall, these regulatory changes underscore the NYDFS’s commitment to consumer safety and the stability of the financial environment.

5.0/5

(100 votes)

Latest

Azcnews Breaking Zklend Loses $4.9m In Starknet Exploit

News | Editor Choice | Policy & Regulations

zkLend Loses $4.9M in Starknet Exploit, Offers Hacker 10% Bounty for Return of Funds

Decentralized lending protocol zkLend has fallen victim to a $4.9 million exploit on the Starknet network, marking a resurgence in crypto-related hacks after a decline in January.

Azcnews Breaking Us And Uk Refuse To Sign International Agreement On Ethical Ai

News | AI | Editor Choice

US and UK Refuse to Sign International Agreement on Ethical AI

The US and UK declined to sign an international AI agreement, citing concerns over excessive regulation, while the summit emphasized ethical AI development, innovation, and global cooperation.

Azcnews Breaking Bitcoin’s Price Fluctuation And The Role Of Otc Transactio

News | Bitcoin | Editor Choice

Bitcoin’s Price Fluctuation and the Role of OTC Transactions

Bitcoin briefly dropped to $94,900 last night before recovering slightly. While market sentiment and institutional strategies often dominate discussions on Bitcoin’s volatility, the impact of over-the-counter (OTC) transactions remains an overlooked but crucial factor.

Azcnews Breaking Bnb Chain’s Four.meme Suffers $183k Exploit In Security Breach

News | Editor Choice | Memecoin

BNB Chain’s Four.Meme Suffers $183K Exploit in Security Breach

The memecoin launch platform has temporarily suspended the creation of new liquidity pools as it works to resolve a recent exploit.

Azcnews Breaking Litecoin Etf Has A 90% Chance Of Sec Approval

News | Altcoin | Editor Choice | Policy & Regulations

Litecoin ETF Has a 90% Chance of SEC Approval

Bloomberg ETF analysts suggest that Litecoin's regulatory filings have been acknowledged, indicating that the SEC likely classifies it as a commodity.