- The involvement of the NYDFS in the crypto space can be traced back to 2015.
- 20 BitLicenses have been issued to companies since 2015.
The New York Department of Financial Services (NYDFS) has announced the formation of a division that will oversee the supervision and licensing of cryptocurrencies. As announced by the current superintended of NYDFS, Linda Lacewell the Research and Innovation Division at the Department of Financial Services has been given the mandate to control crypto-related tasks of the regulator.
“This division will oversee the virtual currency licensing process and will encourage development in the area,” the NYDFS announced.
The involvement of the NYDFS in the crypto space can be traced back to 2015 when the regulator made it compulsory for firms to acquire the BitLicense in order to offer services in the state of New York.
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Up to date, 20 BitLicenses have been issued to companies. The docket has now been handed over to the new division.
According to Lacewell:
“The financial services regulatory landscape needs to evolve and adapt as innovation in banking, insurance, and regulatory technology continues to grow.”
In continuation, she says:
“This new division and these appointments position DFS as the regulator of the future, allowing the department to better protect consumers, develop best practices, and analyze market data to strengthen New York’s standing as the center of financial innovation.”
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