NYDFS Proposes Framework for Assessing Costs for Supervision and Examinations of Virtual Currency Firms

The New York State Department of Financial Services ("NYDFS") proposed a regulation establishing how supervisory and examination costs will be assessed on virtual currency businesses.

Under the proposal, licensed cryptocurrency companies would be billed five times per New York State fiscal year, once per quarter to cover operating costs at the time of the billing (each approximately 25 percent of the estimated annual amount) and one final assessment at the end of the fiscal year based on actual costs. The proposal would bill companies for a full quarter's expenses even if the company is licensed for only part of the quarter. Licensed firms would be required to pay within 30 days of the billing date.

NYDFS also said that companies that are dually registered under New York State banking regulations and cryptocurrency regulations will be billed separately for each charter.

The proposal is subject to a 10-day pre-proposal comment period followed by a 60-day public comment period upon publication in the State Register.