The fees will bring digital currency companies on par with those paid by banking and insurance institutions as a way for the state to recoup operating expense costs and “best support” the industry.
The cost of running a crypto business in New York is on the point of rise with the state government wheelwork up to need companies holding a BitLicense to pay assessment fees to make sure they’re complying with regulations.
The rule was included in New York State’s FY2023 budget signed into law on April 9 by Governor Kathy Hochul, giving the state’s Department of monetary Services (DFS) a “new authority to gather superordinate prices from licensed virtual currency businesses,” consistent with according to by the DFS.
DFS superintendent Adrienne Harris said the fees would bring digital currency businesses in line with those already paid by institutions like banking and insurance corporations and added:
“New York was the first to start licensing and supervising virtual currency companies, and we continue to attract more licensees and the most crypto startup funding of any state in the nation.”
The state of new york was the first within the us to want crypto corporations to be authorized with the introduction of the currently renowned “BitLicense.” the applying fees for such a allow are presently $5,000 and are subject to imprecise capital needs determined by the the big apple DFS.
The annual assessment fee quantity that the DFS can charge crypto corporations is presently unknown, however the same fees for different regulated monetary establishments will price tens of thousands of dollars a year.
The DFS states the fees are to help with paying the operative expenses of control crypto firms and “will empower the Department to create staff with the capacity and expertise to best regulate and support this speedily growing industry.”
Businesses that settle for crypto as payment, produce software for the crypto house like self-custody wallets, or offer advice on crypto trading aren’t subject to the BitLicense and corresponding new fees.
( Jesse Coghlan, Cointelegraph, 2022 )