On December 11, 2019, the New York Department of Financial Services (DFS) published proposed guidance regarding adoption or listing of virtual currency by holders of a BitLicense. Specifically, under the proposed guidance, DFS seeks comment regarding two proposed changes affecting coin listings, both of which are intended to streamline and expedite the process.
- Coins that DFS approves for permitted use will be listed on DFS’s website and any BitLicense holder may choose to list any of these coins without prior approval so long as the licensee gives notice to DFS. Coins initially contemplated for this list are Bitcoin, Bitcoin Cash, Ether, Ether Classic, Litecoin, Ripple, Paxos Standard and Gemini Dollar.
- DFS will provide a proposed model framework for the creation of company coin-listing policies. A BitLicense holder’s coin-listing policy should include robust policies and procedures addressing governance, risk and ongoing monitoring, as further detailed in the proposed guidance. The holder of a BitLicense must submit the proposed coin-listing policy for DFS approval. Upon approval, the company may self-certify the listing of new coins on an ongoing basis, consistent with the company’s approved policy, with prior notice to DFS and without the need for prior approval.
Comments related to the proposed guidance are due by January 27, 2020.