New York authority lays out conditions for banks to offer crypto-related services
New York regulated banks will need to inform the Department of Financial Services about their intentions to offer crypto services at least 90 days before their commencement.
The New York Department of Financial Services (DFS) has released a guideline mandating banking institutions to seek regulatory permission at least 90 days before offering crypto-related services.
The guideline released on Dec. 15 by the DFS Superintendent Adrienne Harris stated that New York-regulated banks must seek approval from the Department before engaging in crypto-related services, even if it is via a third party.
Under the guideline, banks will need to inform the Department at least 90 days before it commences the process to offer crypto-related services.
In addition, interested banks will have to submit a document covering six broad categories of information related to their business plan, risk management, corporate governance, consumer protection, financial, legal, and regulatory analysis.
Superintendent Harris said that the guideline will provide a transparent and timely manner to regulate banking activities.
‘Today’s Guidance is critical to ensuring that consumers’ hard-earned money is protect, that New Yokr regulated banking organizations remain resilient and competitive,” Harris added.
The DFS has urged all institutions already offering crypto services to adhere to the new guideline.