The New York State Department of Financial Services (DFS) now has the authority to collect oversight fees from crypto companies. Adrienne Harris, the superintendent of the service introduced a new bill to make these companies pay for supervision.
Treat crypto companies like any other New York financial institution
Under the Financial Services Law (FSL), the New York State Department of Financial Services (DFS) may charge for monitoring financial institutions. It can be banks, insurance and now New York crypto companies. Adrienne Harris, the Superintendent of DFS, has indeed proposed a new bill that would allow her to bring crypto businesses in line with mainstream financial institutions.
DFS officially announced this initiative on its website beginning on December 1. The fees collected correspond to expenses related to the supervision of financial institutions, to experts’ fees for example. According to Harris, the additional funds would allow him to expand his team dedicated to crypto. Ratings will only apply to licensed crypto companies. In other words, to those with a BitLicense that allows companies to operate in New York.
Crypto space: Protecting consumers as well as possible
Regulators around the world are grappling with how best to oversee companies that offer digital asset services and how to protect consumers. These questions became even more relevant after the collapse of FTX. Adrienne Harris maintains that consumer protection is precisely at the heart of her concerns. She explains : “The ability to collect oversight costs will help the Department continue to protect consumers and keep this industry safe and sound.”
After the FTX implosion, regulators are rushing to impose more crypto regulations. The new law would allow Harris to recruit a quality workforce in crypto regulation in New York and eventually nationwide. The Superintendent of DFS gives the public ten days to react to this new proposal. It should be noted that the latter does not provide for fixed costs knowing that each company involves different levels of evaluation.
The DFS will take time to review the public comments it receives for ten days. After that, the New York Department of Financial Services will issue a revised proposal or notice signaling the adoption of the final rule.
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