Although the global cryptocurrency market is showing an upward trajectory, Regulatory audit It can become an obstacle for the nascent industry. Earlier today, New York’s FCA implemented a new set of rules for billing licensed crypto firms on supervisory costs.
This bill is primarily targeted at New York-based cryptocurrency companies registered under the BitLicense. This requirement allows the Company to conduct Virtual Currency trading activities in New York or with a New York resident.
Crypto companies will be charged for supervision costs
According to a advertisementCryptocurrency companies registered under New York State will begin receiving oversight fee bills. It is claimed that the fees collected from this list will help the organizer to add “top talent” and Additional sources.
New York State Department of Financial Services (Moderator Adrian Harris noted:
This regulation provides the Ministry with additional tools and resources to regulate the virtual currency industry now and in the future, as innovators create new products and use cases for digital assets.
Notably, this new rule regarding appraisal fees was initially proposed in December 2022. NYDFS indicated that it consulted with industry stakeholders and conducted research before developing this new rule. Harris says This appraisal fee “will go a long way toward helping the space grow and helping make sure it grows safely.”
Harris added:
When you can work alongside your regulator and your examiners, we can help identify problems early before they spread, which is really a service we can offer the industry and helps us as regulators to better oversee markets and protect consumers.
Furthermore, the new rule is said to be scaled based on the formula for the size and complexity of a given cryptocurrency. Additionally, crypto companies will be billed for oversight costs five times over the course of the fiscal year.
This includes approximately four quarterly supervisory adjustments based on encryption The company’s total expenses for that particular year. It should be noted that this new rule aligns with the traditional bank billing of valuation fees that NYDFS ultimately uses for its operations.
Crypto companies are registered under the BitLicense
BitLicense was filed under the NYDFS regulatory regime in June 2015. This license requirement is somewhat similar to the requirements for traditional banking supervision.
Crypto companies are required to meet specific requirements related to financing, protection from cyber threats, and implementation of measures to prevent money laundering, among other criteria.
When this regulatory regime was introduced, the NYDFS did not include anything related to appraisal costs. To date, the NYDFS has only listed 33 cryptocurrencies blockchain Companies registered under BitLicense.
Regardless of the news circulating in the industry, the global crypto market has maintained its composure. Over the past 24 hours, the global cryptocurrency market cap is down just 1.8% at the time of writing, at over $1.3 trillion.
Featured image from Unsplash, chart from TradingView