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The steerage, one of many clearest paths ahead but for banks to supply cryptocurrency companies, instructs banks to submit a marketing strategy with particulars of the proposed exercise, element how such a service would impression the financial institution’s capital and liquidity and inform NYDFS of its plans a minimum of 90 days beforehand.
In a press release, NYDFS Superintendent Adrienne Harris mentioned the brand new insurance policies are “essential to making sure that customers’ hard-earned cash is protected” and that New York-regulated banks stay aggressive.
The regulator will “make a complete evaluation” of the knowledge introduced underneath the steerage to find out whether or not a financial institution ought to be permitted to interact in a proposed crypto-related exercise, in accordance with an business letter despatched Thursday to regulated establishments.
Such actions might embody safeguarding cryptocurrency on behalf of shoppers or providing purchasers publicity to sure digital belongings.
As a part of the marketing strategy banks are anticipated to undergo NYDFS, banks ought to element a complete threat evaluation for the service they want to interact in, in addition to anticipated prices of the undertaking and what related shopper safety insurance policies will apply.
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The steerage is efficient instantly, NYDFS mentioned.
It follows a tumultuous month for cryptocurrencies, sparked by the collapse of FTX, one of many largest crypto exchanges, which filed for chapter Nov. 11. Its founder and former chief govt officer Sam Bankman-Fried was charged by federal prosecutors on Tuesday with misappropriating billions of {dollars} and violating marketing campaign finance legal guidelines.
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