New York State’s financial regulator just revoked its approval for most of the digital assets that had previously made it easy for crypto companies to do business with.
The New York State Department of Financial Service (DFS) previously had 24 assets on their “Green List” of coins.
The agency says virtual currency (VC) entities can greenlist or hold assets without additional regulatory requirements.
“The Green List is completely separate and independent from the policies of individual VC entities regarding coin listings and resulting self-certifications.”
The number of coins on the list has now been reduced by eight after the DFS decided to remove most of the tokens, including Ripple (XRP), Dogecoin (DOGE), Litecoin (LTC) and Chainlink (LINK).
Leading crypto assets Bitcoin (BTC) and Ethereum (ETH) are still on the amended Greenlist, along with the stablecoins Gemini Dollar (GUSD), GMO JPY (GYEN), GMO USD (ZUSD), Pax Gold (PAXG) , Pax Dollar (USDP) and PayPal Dollar (PYUSD).
The DFS says it may make changes to the list whenever it deems it necessary to add or remove a coin.
“DFS may add any coin to the Green List at any time and at its sole discretion; remove any coin from the Green list; refrain from placing coins on the Green List; stop the Greenlist process completely; prohibit or otherwise restrict the use of a coin before or after a VC entity begins using a coin; or require a VC entity to remove, cease, or otherwise limit or curtail activities related to a coin.”
The regulator can add a coin to the Green List if the asset or its issuer has a proven track record of safety, soundness and customer protection, as well as broad acceptance. The list may also include stablecoins that have been approved for issuance by the agency.
VC entities that choose to list coins on the Green List must notify the DFS at least 10 days in advance before beginning support. They must also have a DFS-approved coin disposal policy.
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