The New York Department of Financial Services (DFS) has tightened its regulatory grip on cryptocurrencies, as part of its ongoing VOLT initiative aimed at strengthening oversight in the digital asset sector. In a new update, the DFS removed several cryptocurrencies, including Ripple-affiliated XRP and Dogecoin, from its greenlit digital tokens.
The removals coincide with updated guidelines that intend to clarify the department's coin-listing and delisting criteria for regulated entities.
Only eight tokens
In a press release, DFS Superintendent Adrienne Harris announced enhancements to the department's coin-listing policies.
The new guidelines raise the bar for evaluating the risk of adding new cryptocurrencies and introduce rules for businesses that serve retail customers. Prior to these changes, companies with a DFS license could independently certify and add digital assets for holding or trading.
The new guidance removes that leniency and mandates a more active supervisory role for the DFS. The updated greenlist now features only eight tokens, and the absence of popular coins like XRP and Dogecoin could impact how crypto businesses operate in New York.
Crypto regulations in New York
New York has established itself as a pioneer in the realm of cryptocurrency regulation, largely through its BitLicense program. Introduced in 2015, the BitLicense aims to ensure consumer protection, market stability, and the prevention of illicit financial activities in the digital asset space. However, the program has not been without its critics. Industry members often describe the licensing process as cumbersome and overly restrictive.
Over the past two years, the DFS has levied a nine-figure sum in in penalties against various cryptocurrency companies and continues to engage with global policymakers to refine its regulatory framework.