United States of America: Issued NYDFS Guidance on Custodial Structures for Customer Protection in the Event of Insolvency for providers of virtual currency

Compare with different regulatory event:

Description

Issued NYDFS Guidance on Custodial Structures for Customer Protection in the Event of Insolvency for providers of virtual currency

On 23 January 2023, the New York Department of Financial Services (NYDFS) issued a Guidance on Custodial Structures for Customer Protection in the Event of Insolvency for providers of virtual currency. The Guidance outlines the consumer protection requirements that the providers holding a virtual currency licence must follow. In particular, the NYDFS stated that the providers are required to store the books and records, disclose all the information related to their services and products and ensure their marketing materials don't outline false or misleading information. Furthermore, the Guidance provides information regarding the requirement for separate accounting for customer virtual currency, sub-custody arrangements and customer disclosure regarding risk assessments.

Original source

Scope

Policy Area
Other operating condition
Policy Instrument
Consumer protection regulation
Regulated Economic Activity
digital payment provider (incl. cryptocurrencies)
Implementation Level
national
Government Branch
executive
Government Body
other regulatory body

Complete timeline of this policy change

Hide details
2023-01-23
adopted

On 23 January 2023, the New York Department of Financial Services (NYDFS) issued a Guidance on Cust…