NYDFS is the entity that monitors New York State’s historic virtual currency license, named the BitLicense.
The State Senate based in New York City is working hard to authorize the state Department of Financial Services (NYDFS) to supervise the crypto environment.
The New York Senate approved its budget for the fiscal year 2023, which includes a rule that assigns the NYDFS the task of creating a new “assessment” for the digital currency entities it oversees. This way, it intends to align its supervision mandate in digital assets with how the regulator monitors more traditional entities and financial services companies.
According to the revised budget, the assessment intends to cover all operating expenses, according to outlets like Coindesk. It only wants to cover the costs directly linked to the supervision of crypto-oriented entities.
The expenses of each examination of the regulated user under this chapter who gets into the virtual currency business shall get paid by the regulated person. But the superintendent, after getting authorized by the comptroller, may remit such charges.
The MIT license
NYDFS supervises the most prominent cryptocurrency regulation in the US through its virtual currency licensing regime. Businesses expecting to bring New York citizens access to trading or housing services must acquire a BitLicense before setting up business activity.
In a statement, NYDFS Superintendent Adrienne Harris highlighted the budget would strengthen the state’s economy and develop a more solid system within the city.
“The budget also allowed the new authority to charge oversight costs for licensed virtual currency businesses, as the Department already does for traditional financial systems and insurance companies.
New York was the first region to supervise digital assets entities and keeps attracting the most licensees and crypto startup funding of any kind in the nation.
The New Budget Provisions will become active in at least two Months
There are other problems related to cryptocurrencies that New York lawmakers are debating. In particular, last March, a rule that seeks to curb proof-of-work (PoW) cryptocurrency mining operations such as Bitcoin throughout the state got revealed.
What about this New Rule?
The new bill included crypto mining powered by non-metered and non-renewable energy sources. Its approval would instantly stop the issuance of new authorizations for mining activities until the New York Department of Environmental Conservation (DEC) can determine how significant the impact is on the environment.
The updated order of the bill, which got reported by The Block, requests a moratorium on new authorizations for facilities that carry out their activities with carbon-based fuel to execute PoW mining activities with unmetered energy.
The bill doesn’t allow the renewal of permits in cases where there is an increase in the amount of energy consumed. It effectively stops operations for two years at current levels, except for those using renewable energy sources.
By: Jenson Nuñez
