NYDFS proposes new guidance for listing tokens on licensed crypto firms

The New York Department of Financial Services (NYDFS) superintendent Linda Lacewell announced a proposal today that will further regulate the token-listing process, as the "first step in DFS’s review of New York’s BitLicense," per a press release.

The proposed new guidance will indicate which tokens BitLicense holders are cleared to list. The NYDFS will also provide a new framework for companies to create their token listing policies. Existing licensed companies will have to draft their own token listing polices in accordance with the framework and submit for the NYDFS' approval.

“New York is the center of both innovation and consumer protection, and the Department must strive to deliver speed to market and continually adapt to keep pace as the financial services industry continues to rapidly evolve,” said Superintendent Lacewell. “This is an important first step in our review of our virtual currency regime and is designed to make it easier for those who have obtained a New York license to periodically add new coins to their existing products.”

The regulator is now seeking comments on this proposal and the deadline to submit comments is January 27, 2020.

Cryptocurrency firms conducting businesses with New York State residents are required to obtain a Bitlicense from the NYDFS. The proposal, if implemented, may require firms like Coinbase to geo-fence certain assets.