On December 15, the New York State Department of Financial Services (DFS) issued a series of guidelines. These are the guidelines that banks must now follow before offering crypto services. These guidelines have been designed specifically for regulated banks. Discover the contents of the 11-page document produced by the state regulator from New Yorkwhich is particularly demanding when it comes to crypto.
Guidelines for obtaining DFS approval
The new guidelines issued by the New York State regulator present several types of information. These include the documents necessary for a bank to obtain approval from the DFS to offer crypto services. Regulated banks wishing to enter the new industry must in particular provide a business plan. The DFS also wants to have their risk management program.
” A complete written submission must provide a detailed account of the covered institution’s risk management framework to identify, measure, monitor and control all risks “, can we read in the document. That said, banks must also provide a document indicating the governance and oversight of the crypto business they want to establish. They are also required to submit consumer protection information.
The DFS also said: “ A complete written submission must provide the Department with an explanation of the expected impacts of the proposed activity on the covered institution’s capital and liquidity. “. He added that it would be necessary to provide documents on the legal and regulatory analysis of the relevant crypto activity.
Adrienne A. Harris, the Superintendent of DFS, did not fail to speak out on the subject. She said: ” It is essential that regulators communicate in a timely and transparent manner on the evolution of our regulatory approach “.
Meanwhile, one user tweeted that while it hurts to admit it, the DFS license achieves several key goals. He added : “ Le DFS works closely with other regulators such as the UK “.
The New York State Department of Financial Services (DFS) has indicated that any regulated bank must obtain its approval 90 days before undertaking crypto activities. He clarified that permission for past activities should not be viewed as general consent to offer other services.
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