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The NYDFS’ Increases Standards for Coin Listings

The new regulations in New York expand existing regulations and are effective immediately.

New york has increased standards for crypto coin listings.
Creator: ventdusud. Copyright: Getty Images

NEW YORK - The New York State Department of Financial Services (NYDFS) has introduced updated rules for virtual currency businesses in the state, with a particular focus on cryptocurrency delistings. These new regulations, effective immediately, aim to enhance consumer protection and the overall safety and stability of the cryptocurrency market in New York.

NYDFS Superintendent Adrienne Harris talked to the Wall Street Journal about the new regulations and stated:

“When we know that a coin that someone once thought was OK [is not], [and] when we see that new risks have emerged or the coin is being misused, we want our entities to have a way to delist the coin in a way that’s still protective of consumers and protects safety and soundness as well.”

New Coin Listings Regulations

One of the key aspects of these updated rules is the requirement for cryptocurrency businesses to have a clear delisting policy in place. This policy ensures that when a cryptocurrency becomes unsafe or poses new risks, businesses have a systematic way to remove it from their offerings. This not only safeguards consumers but also maintains the integrity of the market.

Additionally, the NYDFS has expanded upon its 2020 guidance, which outlined how crypto companies can adopt and list new cryptocurrencies. The updated rules include provisions for "greenlisted" cryptocurrencies, such as Bitcoin and Ethereum, which can be listed without prior approval, simplifying the process for well-established tokens.

The new rules also impose stricter risk assessment standards for coin-listing policies. This means that businesses must thoroughly evaluate the risks associated with listing a cryptocurrency, helping to weed out potentially harmful tokens.

Ancillary Requirements

Furthermore, there are heightened requirements for retail and consumer products and services in the cryptocurrency space. These measures are designed to ensure that companies offering cryptocurrency-related services meet stringent standards, further protecting consumers.

While New York has a reputation for having stringent cryptocurrency regulations, these rules reflect the state's commitment to fostering a secure and well-regulated crypto environment.

The NYDFS continues to monitor and adapt to changes in the crypto landscape, promoting transparency and safety in the industry. Public comments on some aspects of these rules will be accepted until October 20, 2023, allowing stakeholders to contribute to the regulatory process.


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