October 29, 2020

New York Financial Regulator Greenlights 10 Tokens for Custody

The New York State Department of Financial Services has issued a greenlist of 8 virtual currencies for sale and trade, and 10 coins approved for custody by licensed entities.

According to a Aug. 3 update on the New York Department of Financial Services website (NYDFS), state regulators have approved 8 cryptocurrencies for listing and trading. These tokens include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Binance USD (BUSD), Gemini Dollar (GUSD), Pax Gold (PAXG), and the Paxos Standard Token (PAX). The NYDFS also greenlighted the same coins for custody as well as XRP and Ethereum Classic (ETC).

“Any entity licensed by DFS to conduct virtual currency business activity in New York may use coins on the Greenlist for their approved purpose,” the NYDFS stated. However, it clarified that any licensed business needed to inform the regulatory body prior to using any greenlisted token. 

The announcement also stated that the NYDFS has the authority to remove any of the tokens from the greenlist at any given time, limit the activity of any coin, as well as discontinue the list entirely.

Regulating crypto in the US

The NYDFS is one of primary regulatory agencies for crypto-related businesses in the state of New York, as the regulator issues a major business license for cryptocurrencies, the BitLicense. As the home of the financial capital of the United States, the NYDFS is often at the front line of new regulation.

In June, the regulator announced that it would be allowing a conditional type of license for crypto firms to list tokens. Firms may be able to partner with an existing BitLicense holder to obtain dedicated guidance relating to the structure, capital, systems and personnel requirements.

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