The New York State Department of Financial Services is setting out to tackle a massive regulatory object: How crypto exchanges like Coinbase, Gemini and others list – and perhaps more importantly, delist – tokens. According to a new public service announcement, the call to update the agency’s guidance builds upon and will try to formalize existing working standards.
While “just” a state financial regulator, whatever the NYDFS does often makes an imprint worldwide. Even in an increasingly globalized world, New York remains a main hub for economic activity and capital formation, and so the agency is a leading organization in setting reporting and communication standards that echo across the financial landscape.So too for crypto, in an interesting way and despite The Blockchain’s globalized nature .
But the highly restrictive Bitlicense system hasn’t always paid off, . Licensees including exchanges like Xapo, bitFlyer and the U.S. wing of Bitstamp, aren’t exactly known for their major foothold in the New York or U.S. crypto trading markets. The reason why the NYDFS’s recent announcement could have a global impact is because it deals with whitelisting and blacklisting tokens and because crypto trading is a global phenomenon. In the grand scheme of token prices, it doesn’t really matter whether this or that custody firm is awarded a BitLicense, but it sure does matter whether Coinbase will list or delist a token .