New York Financial Regulator Issues Cryptocurrency Guidance for Banks

The New York State Department of Financial Services (NYDFS) on Thursday issued digital asset guidance to state-regulated banks laying out what information financial institutions must submit before getting approval to engage in virtual currency-related activities. From a reportL: The guidance, one of the clearest paths forward yet for banks to offer cryptocurrency services, instructs banks to submit a business plan with details of the proposed activity, detail how such a service would impact the bank's capital and liquidity and inform NYDFS of its plans at least 90 days beforehand. In a statement, NYDFS Superintendent Adrienne Harris said the new policies are "critical to ensuring that consumers' hard-earned money is protected" and that New York-regulated banks remain competitive. The regulator will "make a comprehensive assessment" of the information presented under the guidance to determine whether a bank should be permitted to engage in a proposed crypto-related activity, according to an industry letter sent Thursday to regulated institutions.

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