In a new purge, the DFS excluded several cryptocurrencies, including Ripple-pegged XRP and Dogecoin (DOGE), from its list of authorized digital tokens.
He New York Department of Financial Services (DFS), known by its acronym in English, strengthened its regulatory oversight on cryptocurrencies as part of its VOLT initiative, which seeks to intensify surveillance in the sector of digital assets.
In its most recent purge, the DFS excluded several cryptocurrencies, including XRP, linked to Ripple, and Dogecoin (DOGE), from its list of authorized digital tokens. These exclusions align with updated guidelines seeking clarify inclusion criteria and currency exclusion for entities under its supervision.
In a press release, DFS Superintendent Adrienne Harris announced improvements to the department’s token inclusion policies. These new guidelines establish a higher standard for assessing risk by adding new cryptocurrencies and implementing rules for companies that serve retail customers.
Prior to these changes, companies licensed by the DFS could independently certify and list digital assets for holding or trading. The new guidelines eliminate this flexibility and require DFS to play a more active oversight role.
Cryptocurrencies: the regulator update
Therefore, the latest update to the New York DFS “greenlist” removed two dozen tokens, including only eight cryptocurrencieshighlighting the absence of other popular cryptocurrencies such as Litecoin (LTC), Bitcoin (BTC), Ethereum (ETH) or PayPall Dollar continue on the list.
New York has stood out as a pioneer city in the regulation of cryptocurrenciesmainly through its program BitLicense. This program, established in 2015, aims to ensure consumer protection, market stability and prevention of illicit financial activities in the field of digital assets. However, the program has faced criticism, with the industry often describing the licensing process as cumbersome and overly restrictive.
During Harris’ tenure, DFS imposed its first sanctions against cryptocurrency companies, such as Robinhood Crypto and Coinbase. In the last two years, the Department has raised more than 132 million dollars in fines against virtual currency companies and has used existing regulations to ensure that companies correct any misconduct which they have incurred.
Source: Ambito
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