NYDFS Proposes Regulation Allowing It to Charge Crypto Companies in New York for Supervision Costs

The New York Department of Financial Services (NYDFS) published a proposed regulation on Thursday that lays out how the state agency would assess New York-regulated crypto companies for costs associated with their supervision.

The proposed regulation comes eight months after the New York State Senate first authorized NYDFS to charge the crypto companies it oversees, bringing its oversight mandate for crypto in line with how the regulator oversees more traditional banks and financial services firms.

Only crypto companies with a BitLicense – a special business license granted by NYDFS that allows firms to business in New York – will be subject to the assessments. Just 22 companies currently hold a BitLicense, which is notoriously difficult to obtain, and only three have been issued this year.

Read more: Can You Really Build a Crypto Empire in the Empire State?

NYDFS Superintendent Adrienne Harris said in a press release that the additional funding will allow the agency to beef up its crypto team, which, in turn, will “help the Department continue protecting consumers and ensuring the safety and soundness of this industry.”

The publication of the draft regulation kicks off a 10-day pre-proposal comment period beginning Thursday, followed by a 60-day comment period after the draft regulation is published in the State Register. After the comment period, NYDFS will either issue a revised proposal or publish a notice of adoption of the regulation in its current form.