New York regulator tells banks to get prior approval for crypto activities

In newly-published steerage, the New York Division of Monetary Providers (DFS) says banks must let it learn about its digital forex plans no less than 90 days earlier than commencing the exercise. The principles apply even when any portion of these actions are to be carried out by a 3rd occasion.

The DFS will then assess the plan primarily based on six broad classes: marketing strategy; threat administration; company governance and oversight; client safety; financials; and authorized and regulatory evaluation.

As for banks already partaking in digital currency-related actions, they need to instantly notify a degree of contact on the division, which is able to search additional info or clarification and impose supervisory necessities, as wanted.

DFS Superintendent Adrienne Harris says: “As we speak’s Steering is vital to making sure that customers’ hard-earned cash is protected, that New York regulated banking organisations stay resilient and aggressive, and that the expectations are clear for people who want to submit proposals for digital currency-related exercise.”

Learn the steerage: Obtain the doc now 304 kb (Chrome HTML Doc)