The New York State Department of Financial Services (NYDFS) has adopted a regulation allowing the agency to collect supervisory fees from licensed crypto firms operating in the state.
The NYDFS announced on April 16 that the new regulation’s supervisory costs would be used for “adding top talent to its virtual currency team.” The government agency will assess fees for the oversight and examination of crypto firms with a BitLicense operating in the state.
“This regulation provides the Department with additional tools and resources to regulate the virtual currency industry, both now and in the future, as innovators create new products and use cases for digital assets,” said NYDFS Superintendent Adrienne Harris.
Since 2015, crypto firms functioning in the state of New York are required to apply for a BitLicense. The NYDFS proposed adopting the cost assessment regulation in December 2022, after which it would meet with “key stakeholders” and receive feedback.
According to the regulatory agency, the proposed rule was added because the state’s Financial Services Law lacked a similar provision regarding the assessment of operating costs.
As of February 10, the NYDFS listed 33 crypto- and blockchain-related companies functioning in the state under a virtual currency license, limited purpose trust charter, or money transmitter license.
The mayor of New York City, Eric Adams, has proposed that the state abolish the BitLicense regime in April 2022, arguing that the requirements impede innovation and economic development.