New York Financial Regulator Adopts Assessment Rule for Crypto Companies – Here's What You Need to Know
The New York State Department of Financial Services has passed a new law that requires companies holding a BitLicense to pay assessment fees similar to insurance and banking firms.
The regulation will give the NYSDFS new authority to “collect supervisory costs from licensed virtual currency businesses” under a provision in New York’s fiscal year 2023 budget, according to a Monday press release.
The new legislation puts digital asset firms in the same row as insurance and banking companies, which pay assessment fees that fund the agency’s operations.
The New York regulator initially proposed the assessment charges in December last year, claiming that they help bring in additional resources that would allow the agency to hire more staff and expand its virtual currency unit.
Adrienne Harris, who leads the New York State Department of Financial Services as its Superintendent, also shared the same point of view, arguing that the new rule helps the future developments in virtual currency.
“This regulation provides the Department with additional tools and resources to regulate the virtual currency industry now and in the future as innovators create new products and use cases for digital assets."
On its website, the NYSDFS detailed that crypto firms will be billed five times in the fiscal year 2023-2024 with four quarterly assessments throughout the year “based on the Virtual Currency Unit’s estimated annual budget at the time of the billing.”
There will also be a final assessment at the end of the year based on the unit’s actual expenses.
The agency said it will require crypto firms to “meet rigorous standards for capitalization, cybersecurity protection, and anti-money laundering protocols, among other requirements.”
Harris revealed
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