New York Proposes Charging With Licensed Crypto Companies

The New York State Department of Financial Services, or NYDFS, has proposed a rule allowing the government agency to charge licensed crypto businesses operating in the state regulatory fees.

NYDFS Superintendent Adrienne Harris said on December 1 that the proposed budget item was open for public feedback.

If approved, the regulation would give the department the authority to assess costs for the supervision and examination of firms operating in the state that have a BitLicense, which has been a state requirement for crypto companies since 2015.

The BitLicense initially cost $5,000 in application fees, with the NYDFS imposing operational capital restrictions.

Harris is attempting to align virtual currency firms with other regulated financial institutions in the state, as the Financial Services Law (FSL) did not include a provision for crypto corporations when crypto regulation was implemented in New York in 2015.

Though some crypto enterprises continue to function in New York with a BitLicense, many have criticized the legislation, including New York City Mayor Eric Adams, as a stiff obstacle.

According to the NYDFS, the plan will be accessible to public comment for 10 days before being published in the state register for an additional 60 days. The proposed regulation expanded on an April rule that gave the NYDFS power to recover supervisory expenses from licensed virtual currency enterprises.

The law, which was signed on Tuesday by New York Governor Kathy Hochul, outlaws some Bitcoin mining companies that use carbon-based energy sources. A proof-of-work mining firm will not be permitted to expand, renew permits, or allow new competitors to start operations for the next two years unless it employs only renewable energy.

The governor went on to say that it was an important move for New York in its efforts to reduce its carbon footprint by cracking down on mining that use electricity generated by fossil fuel-burning power plants. The regulation was also passed when the cryptocurrency sector is still reeling from the collapse of Sam Bankman-FTX, Fried’s which was previously among the most well-known and reputable brands in the sector.

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