NYDFS proposed new guidance for the adoption and listing of tokens

The New York Department of Financial Services (NYDFS), creator of the infamous BitLicense, has proposed new guidance that would impact the listing of tokens for “virtual currency licensees.” The two options proposed are the creation of a web page that lists all permitted tokens and a framework tailored to licensees business model and risk profile that would require approval from the NYDFS. The proposed framework focuses on licensee’s governance around listing tokens, thorough risk assessments, and monitoring both which are required to be free from conflicts of interest.

Why it matters:

• The BitLicense is already one of the most stringent regulations affecting crypto companies in New York. These guidelines would make it more difficult to not only get new tokens listed but continually monitor them.
• The increasing complexity and costs of abiding by the BitLicense could lead to an exodus or at least a barrier to entry to crypto companies operating in New York.