March 28, 2024

New York authorities have issued new requirements for stablecoin operators

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New York authorities have issued new requirements for stablecoin operators

The New York State Financial Services Authority has updated the requirements for the activities of licensed cryptocurrency companies issuing stablecoins.

The document is applicable to BitLicense holders and obliges stablecoin operators to fully back their digital currencies with reserve assets.Investors should be able to exchange their tokens for fiat currencies or other real-world assets at any time.

The new rules also establish requirements for reserve assets, with a separate emphasis that for a stable cryptocurrency, reserve assets must be "separated fromAnother requirement was a monthly audit of stablecoin collateral froma third-party certified company.

The increased focus on stablecoins is caused by the collapse of the algorithmic stablecoin UST and the Terra ecosystem.So far, 22 companies have received a BitLicense in New York State.State lawmakers recently backed a bill for a two-year ban on the opening of new companies that organize cryptocurrency miningbased on the Proof-of-Work algorithm.