Banks must be listed first! NYDFS requires advance filing for virtual currency-related businesses

The New York State Department of Financial Services (NYDFS) has issued a Digital Assets Guidance to banks under its supervision, requiring financial institutions engaging in virtual currency-related activities to file a report 90 days in advance and provide detailed explanations in their operational plans about the impact of such services on various aspects, including technical architecture, third-party service providers, risk assessments, and relevant consumer protection measures.

Guidelines Effective Immediately!

Adrienne Harris, head of NYDFS, stated in a declaration that the new policy is "crucial for truly protecting hard-earned money of consumers" and keeping New York-regulated banks competitive.

NYDFS requires banks under its supervision to submit an operating plan 90 days prior. The operating plan requested by NYDFS covers a wide range of aspects, including operational models and technical architecture, ways in which third-party service providers are involved, sample customer agreements and related terms, various risk assessments, and related methods for consumer protection.

The term "banking institution" refers to those under the jurisdiction of New York Banking Law § 2.11, including banks, trust companies, private bankers, savings banks, savings and loan associations, credit unions, and investment companies, all falling within the regulatory scope. It seems that conducting related businesses in the state of New York will be even more challenging in the future!

SEC Recommends Disclosure of Crypto-related Information

With the recent snowball effect in the crypto market, the largest regulatory body in the United States, the SEC, is concerned about whether there are still other unexploded bombs. The SEC recently issued guidelines, stating that companies should disclose crypto-related matters to investors, such as the amount of exposure to trading counterparties and other market participants, risks related to the company's liquidity and financing capabilities, and risks associated with legal proceedings, investigations, or regulatory impacts in the crypto asset market. Companies obligated to report regularly to the SEC should consider updating their existing disclosures.

However, the guidelines also include a disclaimer in small print at the bottom, stating that these guidelines do not have legal force, indicating that they are merely recommendations for market transparency.