The DFS Superintendent, Adrienne Harris, is in charge of the plan. She wants to hear what the public thinks about it because the regulator wants to get more oversight controls.
The New York State Department of Financial Services (DFS) has proposed a change to state laws that would let it charge licensed crypto companies for regulating them.
Even though that seems strange, the Financial Services Law (FSL) says that the DFS is allowed to charge licensed non-crypto financial entities for the cost of keeping an eye on them.
The DFS Superintendent, Adrienne Harris, is in charge of the plan. She announced the move on the DFS website on December 1 and gave the public 10 days to comment on it.
Harris wants to bring virtual currency businesses in line with other regulated financial businesses in the state. When crypto regulation was passed in New York in 2015, FSL did not have a provision for crypto companies.
Harris also says that these “regulations will let the Department keep adding top talent to its team that regulates virtual currencies.”
Harris said, “We hold companies to the highest standards in the world through licensing, supervision, and enforcement.” He also said, “The ability to collect supervisory costs will help the Department continue to protect consumers and make sure this industry is safe and sound.”
According to the proposal document, the DFS would charge companies based on the total operating costs of overseeing licensees and the “proportion deemed just and reasonable” for other operating and overhead costs.
As a result, there is no set amount that all companies must pay, since the amount of oversight varies from company to company. Instead, the total amount due would be split into five payments over the course of the fiscal year.
FTX, Alameda Research, and former “golden boy” Sam Bankman-Fried, all of which are now bankrupt, caused another multi-billion dollar collapse in the crypto sector. It’s not surprising that regulators are scrambling to add more oversight because of this.