NY Governor Wants Crypto Businesses to Pay Their Own Regulation Costs
New York Governor Andrew Cuomo has reportedly proposed to amend the state’s Financial Services Law (FSL) so that licensed cryptocurrency businesses have to pay for regulation costs associated with oversight conducted by the New York State Department of Financial Services (NYDFS).
The proposal is part of the governor’s “Making Progress Happen” 2020 agenda, and points out that companies licensed under the Insurance Law are required to pay assessments to the NYDGS, while those under the FSL – including cryptocurrency businesses – aren’t. Cuomo’s policy guidebook reads:
“The Governor proposes to amend the FSL to place such entities on an even footing with other financial services companies.”
The NYDFS is responsible for issuing the controversial BitLicense, a license for virtual currency businesses in New York that saw major crypto exchanges, like Kraken, leave the state over the costs associated with it.
By the end of last year, two dozen BitLicenses have been issued by the NYDFS. If Cuomo’s amendment is passed, it could increase operating costs for every crypto business under the FSL’s jurisdiction.
