The New York State Department of Financial Services (DFS) has proposed to change state law and impose fees on authorized crypto regulation organizations.
Although it may seem unusual, the DFS routinely levies fees against the non-crypto financial institutions it regulates for the expenditures. Additionally, its expenses associated with maintaining oversight over them by the Financial Services Law (FSL).
In addition, DFS Superintendent Adrienne Harris, who announced the program on December 1st, is in charge of it. The announcement was release on DFS’s website. The next ten days are dedicate to receiving public feedback on the plan.
Harris effectively wants to bring virtual currency businesses into line with the state’s traditional financial institutions. It is because the FSL did not contain a provision for crypto enterprises when its regulation was adopted in 2015.
Harris said the additional cash would allow the group to increase the size of its crypto staff:
Through licensing, supervision, and enforcement, we hold companies to the highest standards in the world. The ability to collect supervisory costs will help the Department continue protecting consumers and ensuring the safety and soundness of this industry.
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Only organizations using cryptocurrencies and holding a BitLicense, an individual business license offered by NYDFS that permits companies to function in New York, will be subject to the assessments. Just 22 businesses currently hold BitLicenses, which are notoriously difficult to get; this year, three BitLicenses have been granted.
It is not surprising that regulators are racing to enact additional crypto restrictions in the wake of the cryptocurrency industry experiencing yet another multi-billion dollar disaster, this time brought on by the now-bankrupt FTX, Alameda Research, and former golden boy Sam Bankman-Fried.
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