New York City’s mayor Bill de Blasio declared a state of emergency in response to the coronavirus outbreak yesterday. “The only analogy is war,” he said — and the consequences for the crypto industry, as for all others, are sobering. Even ahead of de Blasio’s action, the New York Department of Financial Services (NYDFS) sent a letter to all regulated institutions engaged in crypto-related activities on March 10, asking them to submit detailed “preparedness plans” to address the historic risk: “COVID-19 has already had adverse economic effects domestically and globally. It is critical that each regulated entity establish plans to …

Cryptocurrency entities licensed under the New York’s Financial Services Law (FSL) should pay the costs of regulatory oversight, Governor Andrew Cuomo believes. The Democratic Governor purportedly wants the state authorities to amend the FSL in order to require virtual currency-related entities within the FSL jurisdiction to foot the bill for examination and oversight conducted by New York State Department of Financial Services (NYDFS). The NYDFS is one of primary regulatory agencies for crypto-related businesses in New York state as the regulator issues a major business license for cryptocurrencies, the BitLicense. As the home of the financial capital of the United …

Over the course of the past few weeks, the global cryptocurrency community bore witness to two major announcements related to stablecoins — with the first being the launch of Paxos’s gold-backed Ethereum token, PAX Gold (PAXG), and the other being the release of Binance’s cryptocoin backed by the United States dollar (BUSD). Paxos, a global digital asset trust firm, announced the launch of its PAXG token via a press release a few days back. In the document, the firm claims that its product is the world’s first crypto asset to be fully redeemable in exchange for physical gold. Not only …

The New York Department of Financial Services (NYDFS), the state’s financial regulator, has established a new department that will be responsible for licensing and regulating crypto-related businesses. In a statement on July 23, the NYDFS announced the formation of the Research and Innovation Division which will “house the Department’s division responsible for licensing and supervising virtual currencies, and it will assess new efforts to use technology to address financial exclusion.” The NYDFS requires that businesses involved in the issuance and trade of digital assets receive a special type of registration called a BitLicense. The process purports to assure that crypto-related …

Fidelity’s crypto arm Fidelity Digital Assets Services (FDAS) has reportedly applied for a license to operate as a trust in New York State. FDAS has filed an application with the New York Department of Financial Services (NYDFS) for a trust license, crypto media outlet The Block reported on July 20, citing several unnamed sources familiar with the matter. If the license is approved, FDAS will officially be allowed to offer its crypto custodial services in the state of New York, operating as a Limited Purpose Trust Company, the report notes. In the report, lawyer Arthur Long said that the trust …

Social media giant Facebook has applied for a cryptocurrency business license to use its announced virtual currency Libra in New York, according to a report by Reuters on June 28 New York requires a special license for crypto operations called the BitLicense, which is a product of the state’s finance regulator, the New York State Department of Financial Services (NYDFS). According to the report, Facebook has also been in contact with regulators in England and Switzerland, presumably to discuss the terms of Libra compliance. Facebook is reportedly aiming to launch Libra by 2020, and a spokesperson for the social media …

The New York State Department of Financial Services (NYDFS) has granted a virtual currency license, or BitLicense, to Cottonwood Vending LLC, according to an official tweet on Jan. 31. Cottonwood Vending is a Bitcoin (BTC) ATM operator with terminals in New York City and the surrounding area. According to the tweet, the granting of such licenses “continues to advance responsible innovation in New York’s fintech industry.” Bitcoin ATMs, or BTMs, are touchscreen kiosks that enable users to deposit cash and either buy Bitcoin, or to scan their mobile wallet, sell their crypto, and withdraw cash. Sales and purchases sync automatically …

The Department of Financial Services of New York (NYDFS) has authorized a blockchain-based digital platform offered by a local bank, an official NYDFS press release states Dec. 4. NYDFS superintendent Maria T. Vullo announced today that the department authorized New York-based Signature Bank to offer its digital payment platform Signet in the state. The approved system reportedly uses blockchain technology to allow the bank clients to “transfer ‘Signets’ to make payments with no transaction fees, at any time of the day, year-round.” The system purportedly allows funds “to be transferred in real-time between two commercial clients of Signature Bank, eliminating …

Bitcoin ATM operator Coinsource has been granted a virtual currency license, or ‘BitLicense,’ from the New York State Department of Financial Services (NYDFS), according to a press release published Nov. 1. The regulator has thus given its formal seal of approval for New Yorkers to use cash to buy or sell Bitcoin (BTC) using Coinsource’s “Bitcoin Teller Machines (BTMs).” The Texas-based operator already deploys 40 such machines across the state – in New York City, Westchester and Nassau County – and is the first BTM operator to receive a NY virtual currency license. BTMs are touchscreen kiosks that enable customers …

As Cointelegraph reported on Sept. 10, with the approval of the New York Department of Financial Services (NYDFS), Paxos and Gemini officially announced the introduction of two stablecoins called the “Gemini dollar (GUSD)” and the “Paxos Standard (PAX).” Both stablecoins are backed by the U.S. dollar on a 1:1 basis, with every unit of GUSD and PAX representing the value of one U.S. dollar. Experts believe that the emergence of fully audited, legitimate and licensed stablecoins will have a profound impact on the crypto market, especially in the long-term, as it provides investors a way to retain value without being …

The recent approval of Genesis Global Trading’s BitLicense application has shone fresh light on New York State’s relationship with the cryptocurrency industry. Although New York is historically a business-friendly center and international financial hub, many industry players have criticized the regulatory requirements enforced by the New York State Department of Financial Services (DFS) through the BitLicense since its release date in 2015. Most of these criticisms were confirmed in a round table held earlier this year by New York State senators Jesse Hamilton and David Carlucci, who invited cryptocurrency companies to raise their concerns about the BitLicense. Stakeholders reiterated that …

The New York State Department of Financial Services (NYDFS) yesterday released the third and final revisions to its BitLicense legislation. The updates are aimed at improving functionality within the industry and making sure businesses are compliant without stifling innovation. Two previous versions of the regulations received much criticism and the third is no different. Here are some Bitcoin community reactions to the updated NY BitLicense: Jesse Powell, co-founder and CEO, Kraken: “The heavy compliance costs on digital currency exchanges will make it much more difficult to operate a profitable exchange in the state. Many fear it will stifle innovation in …