The New York Department of Financial Services (NYDFS) is reportedly considering updating its virtual currency license. It will be the first time in almost five years that the guidelines will be changed.
To that end, New York’s regulating agency published its proposed framework for the adoption or listing of cryptocurrency firms on its website on December 11. The NYFDS also invited the general public and other concerned parties to provide feedback on the proposal by January 27, 2020.
Scheme Targeting BitLicense
The newly presented scheme on listings specifically targets BitLicense, the original setup. It’s the primary business license that crypto firms have to secure. It also defines regulations on operating with virtual currencies, as well as its administration and management.
However, this five-year-old scheme remained as is since its implementation in 2015. It has also proven to be quite controversial. Crypto exchanges like ShapeShift and Kraken left the state after BitLicense was passed under Ben Lawsky, the regulating agency’s former Superintendent. However, 24 other exchanges and crypto companies like Circle and Coinbase received the license.
The public are urged to comment on two particular revisions in the new framework shared on the NYFDS site.
The first revision specifies that the state’s regulator will provide a list of all the tokens permitted for digital currency business ventures without the department’s prior approval.
The second amendment includes a suggested model framework for token listings that can be executed to develop a specific adoption policy or coin listing. According to the NYFDS, its approval will allow licensees to self-certify the adoption or listing of new coins. The move is on top of the coins already listed in the initial proposal.
Statement from NYDFS
The NYDFS stated that the upcoming changes to BitLicense are aimed to improve efficiency and regulatory clarity. It’s also a way to ensure that the agency’s method of regulating crypto-enhanced businesses reflects “the realities of an evolving market.
Current NYDFS Superintendent Linda Lacewell explained on Wednesday that it was high time that they “take another look at the virtual currency regulation.” She also noted that the number of years that have passed, the changes the industry has undergone, its maturing and sophistication, and the introduction of new business models have made the review and revamp essential.
The proposed framework would reportedly consider how an exchange platform processes a currency’s governance, monitoring, and risk. The NYDFS also plans to address the concerns of each category before it approves any listing.
The planned upgrade to BitLicense is just the latest of changes the agency has made in 2019 to improve its handling of cryptocurrencies. It previously revealed the creation of a new division that will oversee crypto back in July.