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  • Writer's pictureJamal Saafir

NYDFS Proposes Guidelines For Listing and Delisting Crypto Projects On Exchanges

Updated: Oct 11, 2023

According to a report from WSJ via BeInCrypto, the New York State Department of Financial Services (NYDFS) has suggested protocols to guarantee transparency in the determination process for listing and delisting cryptocurrency on trading platforms.

For those new to the cryptocurrency space, centralized crypto exchanges, or exchanges headquartered with a single point of failure, are commonly the first point of contact with crypto tokens. As beginners are unenlightened to the happenings in the vast world of cryptocurrency, they might unknowingly invest in unsavory tokens listed on a particular exchange and as a result, lose their trading capital.

According to the WSJ, NYDFS has presented a suggested framework to aid crypto firms with drafting “firm-specific coin listing and delisting policies.” The regulator will also be seeking public opinions on this proposal through October 20th.

The NYDFS first issued the framework guidelines in 2020 for coin listing policies. The newly suggested protocols would make it necessary to incorporate guidelines that would also include a delisting framework.

With these policies in effect, NYDFS desires to bring about a specific framework for the delisting of crypto tokens to prevent sudden financial fallout for investors. Adrienne Harris, the Superintendent at NYDFS, explained:

“When we know that a coin that someone once thought was OK when we see that new risks have emerged or the coin is being misused, we want our entities to have a way to delist the coin in a way that’s still protective of consumers and protects safety and soundness as well.”

According to NYDFS, “VC Entities will not be permitted to self-certify any new coins without a coin-listing policy and accompanying coin-delisting policy that complies with the final Guidance.”

Recently, crypto-related developments in New York have multiplied. One instance of reference would be the state proposed bill to allow stablecoin payments for bail bonds in May 2023.

During the same month, New York Attorney General Letitia James urged strict crypto regulations for investors’ protection.

Alongside other rules, the CRPTO (Crypto Regulations, Protection, Transparency, and Oversight) Act focuses on tackling fraud and mandating independent auditing of crypto companies.

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