NYDFS Finalizes Guidance on Virtual Currency Listings

The New York Department of Financial Services ("NYDFS") finalized guidance on listing and delisting virtual currencies for New York-regulated entities engaged in virtual currency businesses ("VC Entities").

In an industry letter, NYDFS stated that the final guidance is intended for VC Entities seeking to self-certify coins. NYDFS said that the guidance also covers policies for delisting coins (see previous coverage). In response to comments on the original proposal, NYDFS:

• included risk-based considerations for a VC Entity's virtual currency activities, such as implementing retail consumer protections by making certain characteristics of virtual currencies "impermissible for self-certification" for any business activity available to retail consumers;
• clarified risk assessment expectations to prevent regulatory uncertainty and added tailored risk assessment expectations to account for VC Entities' specific virtual currency business activities;
• required that VC Entities have a policy for delisting virtual currencies; and
• included listing procedures that generally require advance notification, subject to exceptions where advance notification of a coin-delisting "may not be feasible and could result in unintended consumer harm."