March 28, 2024

NYDFS requires cryptocurrency firms to develop coronavirus preparedness plan

The NYDFS requires regulated cryptocurrency companies to provide detailed preparedness plans forcoronavirus due to its danger to health and business.

New York Department of Financial Services (NYDFS) onthis week circulated a letter stating that regulated cryptocurrency firms must draw up emergency plans in response to the coronavirus pandemic.

The plan must include defense strategies.employees, enhanced cyber risk mitigation measures, and emergency communication plans and procedures to ensure continued functioning of critical operations. Companies should also set out a step-by-step plan for dealing with a massive customer divestment.

The regulator has expressed particular concern overthat hackers might try to exploit the coronavirus pandemic. NYDFS emphasized the risk of covert hacker attacks and encouraged firms to consider introducing more robust security measures that could detect “fraudulent trading or suspicious withdrawals.”

The Agency emphasized the possibility thatremote workers may jeopardize assets held by firms as they move from cold storage to hot wallets. According to the letter, companies must submit their plans within the next 30 days, but it is advisable to do so "as soon as possible."

The coronavirus pandemic has hit the world hardeconomy and cryptocurrency industry. Yesterday, the price of BTC dropped to $5,600 amid the decline of traditional markets; last night the rate dropped below $4,000 and is now around $5,400.

Effective today, the Chicago Mercantile Exchange(CME) suspended trading in Chicago, including Bitcoin derivatives. The Coinbase exchange and the analytics firm Messari have transferred employees to work from home. Blockstack is also encouraging employees to work remotely.

</p></p>