It will be easier for New York cryptocurrency businesses to launch in New York, thanks to a plan by regulators that would ease licensing rules.
The New York State Department of Financial Services (DFS), which supervises 1,500 banks and financial institutions and more than 1,400 insurance companies, has proposed a conditional licensing framework that promises to make it easier for cryptocurrency startups.
Under the proposal, emerging companies who participate in the program can apply for a conditional license from DFS if they partner with an existing firm authorized by DFS to engage in virtual currency business activity.
The existing licensee would provide the startup with the operational, staffing, and other support until it can obtain a full DFS virtual currency license. DFS said it will provide a list of approved coins licensees can adopt.
Linda Lacewell, DFS’ superintendent, said her agency and the State University of New York (SUNY) have signed an agreement to debut “SUNY Block” a SUNY virtual currency program and proposed a licensing framework crafted to ease entry for new companies to enter the New York market. Once licensed by DFS, the program can support virtual currency firms.
“This MOU with SUNY is a strategic step to diversify and deepen the next wave of innovators in the virtual currency space in New York,” said Lacewell in a statement. “The DFS actions announced today, in consultation with numerous industry participants and the public, will boost responsible innovation and help get New York’s economy back on its feet.”
Kristina Johnson, SUNY’s Chancellor, said the key ingredient of the agreement is to develop the next generation of developers, researchers and leaders.
“SUNY’s partnership with DFS further builds on Governor Andrew Cuomo’s efforts to boost New York’s economy by creating new opportunities within our high-tech industries,” she said in a statement.
Lacewell and Johnson said the agreement will expand virtual currency in New York and support Governor Andrew Cuomo’s efforts to advance an innovative economy in the state and help rebound from the impacts of the COVID-19 pandemic.
DFS is requesting public comment on this proposed framework by August 10th.