New York’s governor Andrew Cuomo wants the Department of Financial Services (NYDFS) to have more power when it comes to regulating licensed entities, cryptocurrency startups included.
Presenting his “state of the state” plan for 2020 on Wednesday, he published 321 pages of proposals that include a new perspective on existing exemptions some consumer financial services and products have.
NYDFS Can Execute Action Towards Unlicensed Entities
NYDFS, which is the creator of BitLicense has the power already, but there are entities declaring they’re not bound to its regulations because they’re not selling their goods straight to the purchasers. Banking and insurance laws are giving NYFDS the right to collect valuation costs, yet companies that operate within the Financial Services Law aren’t precisely bound to pay out. This is what the NYDFS document reads as far as this issue goes:
“Entities licensed under the FSL (e.g. virtual currency entities) are not required to pay such assessments, despite being subject to similar examination and oversight requirements.”
According to the same document, Cuomo is looking to revise the law that closes all these loopholes.
NYDFS Regulating Cryptocurrency Startups Since 2014
NYDFS is regulating new crypto enterprises with its digital currency license ever since 2014, through BitLicense. Last October, NYDFS superintendent Linda Lacewell said the agency is making reviews in the sector and cited the crypto industry’s evolution since BitLicense was proposed for the first time. Including a coin listings model framework for exchanges and a listing cryptocurrencies approval process, the changes proposed by NYDFS are open to public comments until January 27.