NYDFS Bolsters Crypto Oversight with Dubai Regulator Veteran

New York’s financial watchdog has appointed Kenneth Coghill, a former high-ranking official from Dubai’s financial regulator, as the new deputy superintendent of virtual currency at the New York State Department of Financial Services (NYDFS).

Coghill, who commenced his role on Thursday, previously served as the director and head of innovation and technology risk supervision at the Dubai Financial Services Authority (DFSA). At DFSA, Coghill led initiatives focused on the regulation of emerging technology-driven business models, including cryptocurrency service providers and alternative lending platforms. His extensive experience also includes a tenure as a market regulation department manager at Cboe Options Exchange and earlier work as an options trader.

Coghill steps into the role previously held by Peter Marton, who departed in October to join Fireblocks, a prominent crypto platform, as its director of digital identity. Marton’s transition is part of a broader trend of regulatory professionals moving into key positions within the rapidly evolving cryptocurrency industry.

Read more: US Sues World’s Largest Crypto Exchange Binance

This appointment follows NYDFS’s recent recruitment of John Melican as deputy superintendent for limited-purpose and virtual currency trusts. Melican, who succeeded David Hunter—a former bank examiner at the Office of the Comptroller of the Currency—brings his experience as the former chief legal officer at blockchain analytics firm Elliptic to his new role. His responsibilities will include overseeing and examining entities seeking to establish trusts in New York and evaluating their applications, with a focus on custody, tokenization, and the launch of stablecoins, which are digital currencies pegged to traditional currencies like the U.S. dollar.

The NYDFS’s strategic hires highlight its commitment to maintaining robust oversight of the cryptocurrency sector amidst its rapid expansion. By integrating seasoned professionals with deep expertise in financial technology and market regulation, the agency aims to ensure the integrity and stability of New York’s financial landscape in the face of burgeoning digital innovations.

Source: WSJ