To navigate the complex world of crypto, DeFi, and AI, New York’s financial regulator is looking for a seasoned policy expert, as per the latest crypto news.
The New York State Department of Financial Services (NYSDFS) is on the hunt for a specialist to shape the future of policies surrounding cryptocurrencies, decentralized finance (DeFi), artificial intelligence, and other emerging financial technologies.
This role, part of the NYSDFS Innovation Policy Unit, is dedicated to addressing the most pressing and innovative policy challenges in the financial services sector. The successful candidate will delve into policy matters not only in traditional markets but also in the rapidly evolving worlds of crypto, DeFi, and AI-powered financial tools.
The NYSDFS has a significant history with cryptocurrency regulation, having introduced the BitLicense in August 2015. This licensing framework, aimed at overseeing cryptocurrency usage in New York, led to some major crypto firms like Bitfinex, Kraken, and Paxful exiting the state due to compliance issues. Since its introduction, the NYSDFS has continually refined the BitLicense to maintain stringent oversight of crypto exchanges and service providers.
On November 15, the NYSDFS introduced new rules requiring crypto companies to submit their coin listing and delisting policies for approval. These policies must consider various risks, including technological, operational, cybersecurity, market, liquidity, and potential illicit activities.
Earlier this year, New York State Comptroller Thomas DiNapoli raised concerns about the NYSDFS’s management of the BitLicense. He highlighted deficiencies in security checks, such as incomplete fingerprinting processes, and noted that the NYSDFS had not consistently verified applicants’ tax obligations or minimum net worth documentation.
Members of the Innovation Policy Unit will be expected to conduct both qualitative and quantitative research to support the NYSDFS in its policy-making efforts.
Additionally, on May 30, the NYSDFS established new customer service standards for regulated virtual currency entities (VCEs) or crypto exchanges. By the third quarter of 2024, these entities must begin tabulating customer feedback, which will be accessible to the NYSDFS by November 1. As of now, 32 crypto exchanges are registered under BitLicenses or trust charters in New York.
