The New York Department of Financial Services (NYDFS) has warned banks wishing to enter the cryptocurrency industry that they should seek permission and shared a detailed guide on how to proceed in the process.
On December 15, the NYDFS warned state-regulated banks that they must seek approval to engage in digital currency-related activities, and provided a detailed report outlining what information they must submit before obtaining approval. digital asset guide published.
For banks to provide cryptocurrency services One of the clearest indicators ever published This guide contains important information. The guide, which recommends banks to submit a detailed dossier on their operating plans, also asks them to detail how such a service would affect the bank’s capital and liquidity. However, banks’ NYDFS inform them at least 90 days before their plans needs.
In addition, banks are required to provide information in many different subcategories. Among these subcategories detailed business plans, how to manage crypto-related enterprise-wide risk, how they will establish their corporate governance structures and how to protect consumers detailed requests for details are included.
NYDFS inspector Adrienne Harris He made the following statements about the said guide:
As traditional financial institutions continue to innovate and the crypto market evolves over time, new guidance on crypto-related activities is needed. Our organization’s regulations and guidance create an audit framework that helps protect consumer transactions and the safety and soundness of companies.