The Governor of New York, Andrew Cuomo, has reportedly proposed to amend the state’s Financial Services Law (FSL) so licensed cryptocurrency business have to pay costs associated with oversight conducted by the New York State Department of Financial Services (NYDFS).
The proposal, part of the governor’s “Making Progress Happen” 2020 agenda, points out that companies licensed under the Insurance Law have to pay assessments to the NYDFS, while companies under the FSL aren’t.
Cuomo’s 321-page policy guidebook on improving the state’s economy suggests virtual currency businesses should be “on an even footing with other financial services companies.” It 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 the state of New York that saw various cryptocurrency exchange leave the state shortly after it was introduced, over the costs associated with it.
A total of two dozen BitLicenses have so far been issued, but some businesses still do not operate in New York because of the license. Kraken, for example, left the state when the BitLicense was introduced as it would require the exchange to share detailed business records, including client information, and incur costs estimated to be between $50,000 and $100,000.
As covered, Kraken recently detailed that compliance costs are growing as it has been receiving more and more law enforcement inquiries. Per the exchange, various businesses choose to block the U.S. over costs associated with compliance.
If passed, Cuomo’s amendment could increase the operating costs for cryptocurrency businesses under the FSL’s jurisdiction, at a time in which the market’s growth has been relatively flat.
Featured image via Pixabay.