Cryptocurrency business owners are constantly faced with a new challenge: the ever-changing laws surrounding digital assets. The regulatory framework surrounding the blockchain is still in its infancy. The amount of legal rules surrounding cryptocurrency has increased exponentially in the last year. The New York State Department of Financial Services (NYSDFS) has unveiled its new legal regulations for businesses operating within the crypto space. How will these new regulations affect your business?
The New Crypto Legal Rules
Coindesk reported that the New York State Senate increased efforts from the Department of Financial Services to oversee cryptocurrency.
Early Saturday (April 9), the Senate passed its fiscal year 2023 budget, which included a provision requiring NYDFS to develop a new charge for crypto companies it oversees, in order to bring its oversight mandate in virtual currencies in line with that of traditional banks.
Assessments are designed to “relieve” the agency’s operating costs, and will reportedly only cover expenses incurred directly in oversight of crypto companies.
Every examination of the affairs of a person who engages in virtual currency business activity pursuant to this chapter shall be borne and paid for by that person, but the superintendent, with the approval of the comptroller, may remit such charges in his discretion for good cause shown,” the budget stated.
NYDFS Superintendent Adrienne Harris said the budget’s goal is to support the state’s economy and “build a stronger New York.”
As part of the budget, the Department will be able to collect supervision costs from licensed virtual currency businesses, just as it already does for banks and insurers.
According to her, New York was the first state to start licensing and supervising virtual currency companies, continuing to attract the highest number of licenses and funding for crypto startups nationwide.
This new budget provision is expected to take effect in two months.
Earlier this year, PYMNTS reported that the countries with more corruption tend to have more people using crypto, according to the International Monetary Fund (IMF).
According to the study, the countries with strong capital controls, which make it harder to transfer money overseas, also have a greater number of crypto users.
According to a study, crypto assets are likely used to move money illegally worldwide.
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