(Jhe Center Square) – Licensed cryptocurrency businesses in New York will have fees levied, the New York State Department of Financial Services said Thursday.
The proposed rule would treat virtual currency companies the same as other state financial institutions, with the fees allowing the department to hire the staff needed to monitor compliance, DFS Superintendent Adrienne A. Harris said in a statement. a statement.
“New York State has been regulating virtual currency companies since 2015 with a strong prudential framework,” she said. “Through licensing, supervision and enforcement, we hold companies to the highest standards in the world. The ability to collect oversight costs will help the ministry continue to protect consumers and keep this industry safe and sound.
Thursday’s announcement opens a 10-day pre-proposal comment period. A 60-day public comment window will open once the draft policy is posted on the National Registry. The finance department will then review the comments and determine if any revisions are needed before implementing the settlement.
The move comes a week after Democratic Governor Kathy Hochul signed a bill that places a two-year moratorium on new permits for fossil-fuel-powered cryptocurrency mining facilities authenticated by cryptocurrency methods. proof of work.
Environmental groups have praised Hochul for the move, but industry executives say the decision will not have the effect that proponents of the ban hoped for.
John Olsen, the New York state official for the Blockchain Association, a national crypto industry group, said in a statement to The Center Square that Hochul should set up a task force to see how the state can reap the benefits of virtual currency mining and trading. .
“Governor Hochul’s decision to sign the anti-proof-of-work bill into law is a step backwards for New York and could push crypto mining to states with less stringent environmental and emissions standards,” said Olsen. “Crypto is here to stay – and New York should study it rather than ban it.”
Also on Thursday, the Blockchain Association released an economic impact report that determined that member companies sampled for the study have helped create or support more than 3,200 jobs in New York City. These companies are also responsible for an economic impact of $716 million, including $416 million in direct contribution.