NYDFS Threats to the Crypto Sector: Request for Common Standards

An NYDFS representative, in a commentary to the media, expressed support for the regulator’s decisive policy, saying that the agency is ready to confront those who violate federal laws in the crypto sector. At the same time, they do not consider blockchain technology and cryptocurrency generally illegal.

New York Department of Financial Services (NYDFS) Superintendent Adrienne Harris has issued a threat to crypto companies that do not comply with federal regulations. CoinDesk reports this .

According to her, the regulator is not afraid to take tough measures against violators. As an example, she cited NYDSF sanctions against the Coinbase exchange and the Robinhood platform.

Let us remind you that the latter was accused of violating AML requirements and ordered to pay a fine of $30 million. Among the NYDFS complaints was the lack of a phone number on the platform’s website for receiving customer complaints.

The regulator's case against Coinbase ended in January 2023. The exchange agreed to pay a fine of $50 million. The company pledged to spend the same amount to improve the customer verification procedure.

“We spent quite a lot of time setting the tone, as I call it. We conveyed what rules apply in the industry and our expectations; those who refuse to follow them will face sanctions,” Harris emphasized.  

A representative of the department also commented on the Binance case. According to her, this case will bring closer attention from supervisors to the crypto-asset sector.

However, Harris maintains that she has no preconceptions about the industry as a whole:

“There is nothing illegal about it [the technology]. It's just a software solution. Instead of a centralized structure, it has a shared registry. […] But those illegal actions in which it acts as an instrument are a completely different matter.”  

The only correct solution, according to Harris, would be the formation of uniform basic standards in the industry.

Let us recall that a similar thesis, after the completion of the investigation into the activities of Binance, was expressed by the Commodity Futures Trading Commission.