The New York State Department of Financial Services (DFS) has handed out guidance to regulated banks that wish to engage in activities related to cryptocurrencies. DFS has provided these banks with a checklist of submission requirements for the state regulator seeking to conduct businesses in crypto.

The guidance went into effect immediately, states the application process, and “summarizes the types of information the Department considers relevant“ to acquire the agency’s approval.

This guidance document comprises of 11-pages which shape the information through bullet points and represents the informational requirements for various categories such as “Business Plan” and “Consumer Protection” in particular, along with other formal checklists.

Details About The Crypto Guidelines

This clarification guideline urges the regulated banks to submit a business plan to the regulator at least 90 days in advance. However, approval for prior activities “does not constitute general consent” said the document. Some other activities by the third-party service providers might come under the radar and require the agency’s approval too.

Additionally, the institutions that are already involved with cryptocurrency activities were ordered to comply with the guidelines and to be in sync with their respective points of contact at the agency immediately.

DFS Superintendent Adrienne A. Harris stated in the guidelines:

The checklist primarily includes six conditions which will need the banks to work and provide sufficient information if they require approval for the virtual asset-based activities. The banks are needed to provide data in these six categories:

The financial model of the crypto-based activity

The ways they plan on managing enterprise-wide risks which are tied to the digital asset sector

Details about creating a corporate governance framework

Plans on protecting investors and their money

Legal and regulatory analyses

Additional list of documents that institutions must submit before they begin operations

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