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NYDFS Issues Guidance on Virtual Currency Self-Certification and Proposes Conditional BitLicense Framework
Practical Law Legal Update w-026-4255 (Approx. 3 pages)
NYDFS Issues Guidance on Virtual Currency Self-Certification and Proposes Conditional BitLicense Framework
by Practical Law Finance
| Published on 23 Jul 2020 • USA (National/Federal) |
The New York Department of Financial Services (NYDFS) issued final guidance on a self-certification regime allowing virtual currency licensees to adopt virtual currencies without NYDFS approval. NYDFS also requested public comment on a new proposal for the issuance of conditional virtual currency licenses (conditional BitLicenses) and advised of changes to its method of reviewing applications for virtual currency licenses (BitLicenses).
On June 24, 2020, the New York Department of Financial Services (NYDFS) announced that it issued:
- Final guidance for virtual currency (VC) licensees (NYDFS VC final guidance) that, effective immediately, permits VC licensees to self-certify the listing or adoption of new virtual currencies (referred to as coins) and established a "greenlisting" approach under which NYDFS will provide a list of approved coins that all licensees can easily adopt for their VC-related business purposes. The NYDFS VC final guidance Is effective immediately.
- A request for public comment on a proposed conditional BitLicense framework.
- A notice of practices to applicants and potential applicants for VC business activity licenses (BitLicenses) aimed at creating a more transparent and timely process for the evaluation of BitLicense applications.
For details on these initiatives, see Practice Note, NYDFS Virtual Currency BitLicense Framework: Overview.