The proposal is led by DFS Superintendent Adrienne Harris who is looking for public feedback on the move as the regulator looks to gain further oversight controls.
The new york State Department of financial Services (DFS) has submitted a planned modification in state laws that would enable it to charge authorized crypto firms for regulation them.
While that may seem like associate odd proposition, below financial Services Law (FSL) it's common practice for the DFS to charge licensed non-crypto financial entities for the price and expenses of maintaining oversight over them.
The proposal is led by DFS Superintendent Adrienne Harris, who declared the move via the DFS web site on Dec. one and has submitted it for public feedback over the subsequent 10 days.
Essentially, Harris is looking to bring virtual currency businesses in line with other regulated financial entities within the state, as FSL didn't have a provision for crypto firms once crypto regulation was adopted in new york in 2015.
Harris additionally outlines that these “regulations will allow the Department to continue adding top talent to its virtual currency restrictive team.”
“Through licensing, supervision and enforcement, we hold companies to the highest standards within the world,” Harris same, adding that “the ability to collect superordinate prices can facilitate the Department continue protective consumers and ensuring the safety and soundness of this trade.”
According to the proposal document, the DFS would charge companies supported the overall operative expenses of overseeing licensees, and therefore the “proportion deemed simply and reasonable” for different operative and overhead expenses.
As such, there isn’t a collection figure that all firms pay as their amount of oversight differs, however, the overall amount owing would be countermined into five payment periods over the yr.
With the crypto sector witnessing yet one more multi-billion implosion, this point because the results of now-bankrupt FTX, Alameda analysis and former man SAM Bankman-Fried, it's unstartling that regulators ar scrambling to impose additional restrictive oversight.
Related: we might use crypto regulation after FTX — but let's start with basic definitions
In a U.S. Senate committee hearing on the FTX debacle on Dec. 1, commodity Futures trading Commission (CFTC) chair Rostin Behnam declared that whereas he feels his agency has the tools to oversee crypto, there are gaps in legislation that need filling.
“Without new authority for the CFTC, there'll remain gaps in a federal regulatory framework, though other regulators act within their existing authority,” he said.
(BRIAN QUARMBY, Cointelegraph, 2022)