NYDFS proposes to charge licensed crypto companies for their regulation

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Financial Services DepartmentNew York has proposed amendments to the law, according to which licensed cryptocurrency companies will be required to pay a fee to regulate their activities.

This proposal was put forward for a 10-daypublic comment by New York Department of Financial Services (NYDFS) Superintendent Adrienne Harris. Harris explained that under the Financial Services Act, the NYDFS may charge registered non-cryptocurrency financial institutions a fee for overseeing their activities. Given that this law does not include provisions for cryptocurrency companies, the initiative would help regulate crypto assets on a par with other financial institutions operating legally in the state.

The fee that NYDFS proposes to chargelicensed cryptocurrency companies will depend on the agency's overall operating costs associated with regulating their activities, as well as other overhead costs. This means that companies will pay different amounts in each case. Their total debt will be broken down into five payment periods during the financial year. Harris emphasized that thanks to the new amendments, NYDFS will attract the best specialists in regulating virtual currencies to its staff.

“Through licensing, control andlaw enforcement, we lead companies to comply with strict international standards. By charging fees to regulate crypto companies, the Department will continue to protect consumers and ensure the safety of this industry,” said the NYDFS Administrator.

Earlier, the New York financial regulator spokeagainst the launch of “regulatory sandboxes” for fintech companies, fearing that they could evade compliance with existing laws. Harris recently said that after the collapse of the FTX exchange, regulators must strengthen oversight of the cryptocurrency industry.