NY Financial Watchdog Makes New Division for Crypto Licensing

The New York Department of Financial Services (NYDFS) has created a division for the supervision and licensing Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term.

Announced by Linda Lacewell, the newly appointed superintendent of NYDFS, the Research and Innovation Division at the Department of Financial Services, will take over all crypto-related tasks of the department’s in-house teams.

“This division will oversee the virtual currency licensing process and will encourage development in the area,” the NYDFS stated.

Will it allow more firms to enter New York?

The NYDFS entered into crypto licensing in 2015 when it was made mandatory for cryptocurrency companies to obtain the controversial BitLicense for offering services in the state.

The new division will now be responsible for handing out the BitLicense to crypto companies. Though the agency issued over 20 BitLicenses to date, it is still one of the more controversial licenses in the country and opposed by several key figures of the crypto industry.

“The financial services regulatory landscape needs to evolve and adapt as innovation in banking, insurance, and regulatory technology continues to grow,” Lacewell said in the official statement. “This new division and these appointments position DFS as the regulator of the future, allowing the department to better protect consumers, develop best practices, and analyze market data to strengthen New York’s standing as the center of financial innovation.”

The superintendent also named four executives to lead the newly formed division.

Matthew Homer, an ex-executive at Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term startup Plaid, was appointed to head the division as executive deputy superintendent. Olivia Bumgardner, the current director of research at NYDFS, joined the division as deputy superintendent and will share the position with Matthew Siegel, an attorney in the Antitrust Division of the US Department of Justice. Andrew Lucas, director for the Office of Financial Innovation, will serve as counsel.

Meanwhile, the New York State Assembly legislators recently appointed six members in its crypto task force who will study the industry and make regulatory recommendations to lawmakers.