The New York Department of Financial Services (NYDFS) announced that it has begun charging crypto firms that are subject to the agency’s supervision and examination, putting the crypto industry more in line with banking and insurance firms.
The new rule applies to firms holding a bitlicense – a business license required to engage in cryptocurrency activities in New York, and which is issued by NYDFS. Each bitlicense firm will be billed five times each fiscal year, four estimated quarterly assessments and one true-up based on the firm’s actual expenses for the year, the new regulation said. The regulation also coincides with the beginning of New York state’s fiscal year, which begins April 1 and ends March 31 each year.
“As the first prudential regulator of virtual currency in the nation, New York has created a framework that sets the highest standards for safety, soundness, and consumer protection while fostering responsible growth,” NYDFS Superintendent Adrienne Harris said. “This regulation provides the Department with additional tools and resources to regulate the virtual currency industry now and in the future as innovators create new products and use cases for digital assets.”
NYDFS adopted its bitlicense regulatory regime in June 2015, and was one of the first agencies in the country to do so. The regulation at the time didn’t include a provision for assessment costs, NYDFS said, but it has since done research and met extensively with industry stakeholders to inform this new regulation before adopting it.