View of Central Park in Mahnattan, New York
View of Central Park in Mahnattan, New York. B1M

The New York Department of Financial Services (NYDFS) is planning to update its controversial virtual currency license for the first time in five years, the authority announced in a press release on 11 December.

According to the proposed guidance, the NYDFS wishes to modify the approval process for listing new virtual currencies, which currently has the N.Y. authority review and approve every cryptocurrency on a case-by-case basis.

The regulator further stated that this is only its first step in the review of the BitLicense, and that the public has until 27 January 2020 to comment on the new framework.

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The NYDFS has proposed two major updates on which the public can comment on. The first will ensure that any coin approved by the regulator can be listed on any exchange that operates in the state, given that the NYDFS is notified.

The second proposal is a model framework for coin listings, which if approved will help exchanges in the state list new coins.

The press release further states that this will be the first time that the NYDFS has gone about updating its rules for the BitLicense since the summer of 2015. The updates are aimed at providing regulatory clarity, efficiency, and ensure that NYDFS’ regulation “reflects the realities of an evolving market”.

In July, the N.Y. regulator created a new department that was responsible for the supervision and licensing of virtual currencies within the state, the Research and Innovation Division.

The restructuring process at the time was aimed at improving the DFS’s level of understanding of the innovative proposals by crypto startups.

In October, the agency was also looking to hire a specialist with expertise in the field of virtual currencies and blockchain, who would take the position of Deputy Superintendent in the Research and Innovation Division, and would be in charge of policy decisions and the regulation of emerging and innovative market.

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