New York monetary regulator points cryptocurrency steerage for banks – Reuters

Dec 15 (Reuters) – The New York State Division of Monetary Providers (NYDFS) on Thursday issued digital asset steerage to state-regulated banks laying out what data monetary establishments should submit earlier than getting approval to interact in digital currency-related actions.

The steerage, one of many clearest paths ahead but for banks to supply cryptocurrency providers, instructs banks to submit a marketing strategy with particulars of the proposed exercise, element how such a service would affect the financial institution’s capital and liquidity and inform NYDFS of its plans no less than 90 days beforehand.

In a press release, NYDFS Superintendent Adrienne Harris stated the brand new insurance policies are “essential to making sure that buyers’ hard-earned cash is protected” and that New York-regulated banks stay aggressive.

The regulator will “make a complete evaluation” of the knowledge introduced underneath the steerage to find out whether or not a financial institution must be permitted to interact in a proposed crypto-related exercise, in response to an business letter despatched Thursday to regulated establishments.

Such actions may embody safeguarding cryptocurrency on behalf of consumers or providing shoppers publicity to sure digital belongings.

As a part of the marketing strategy banks are anticipated to undergo NYDFS, banks ought to element a complete threat evaluation for the service they want to have interaction in, in addition to anticipated prices of the venture and what related shopper safety insurance policies will apply.

The steerage is efficient instantly, NYDFS stated.

It follows a tumultuous month for cryptocurrencies, sparked by the collapse of FTX, one of many largest crypto exchanges, which filed for chapter Nov. 11. Its founder and former chief government officer Sam Bankman-Fried was charged by federal prosecutors on Tuesday with misappropriating billions of {dollars} and violating marketing campaign finance legal guidelines.

Reporting by Hannah Lang in Washington
Modifying by Nick Zieminski

Our Requirements: The Thomson Reuters Belief Ideas.

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