New York's DFS Proposes A Amendment To The Law To Charge Crypto Companies

New York will charge a certain fee to crypto companies. (photo: dock. Pixabay)

JAKARTA - The Department of State Financial Services of New York (DFS) has submitted a proposed amendment to state laws that allow them to regulate and charge licensed crypto companies.

While it may seem like a strange proposition, under the Financial Services Act (FSL) it is a common practice for DFS to charge and spend on licensed non-crypto financial entities to maintain oversight of them.

The proposal was led by DFS Inspector Adrienne Harris, who announced the move via the DFS website on December 1 and has sent it for public feedback for the next 10 days.

Basically, Harris wants to bring the virtual currency business in line with other regulated financial entities in the state, as FSL has no provisions for crypto companies when crypto regulations were adopted in New York in 2015.

Harris also outlined that this regulation would allow the Department to continue to add the best talent to its virtual currency regulatory team.

"Through licensing, supervision, and enforcement, we hold companies with the highest standards in the world," Harris said, quoted by Cointelegraph. He added that the ability to raise surveillance costs will help the Department continue to protect consumers and ensure the safety and health of this industry.

According to the proposal documents, the DFS will impose fees on the company based on total operational costs to oversee license holders, and proportions that are considered fair and reasonable for operational costs and other overheads.

Thus, there is no exact figure paid by all companies because the amount of supervision is different, however, the total amount to be paid will be divided into five payment periods during the fiscal year.

Because the crypto sector saw another multi-billion boom, this time as a result of the now bankrupt FTX, Alameda Research and former gold boy Sam Bankman-Fried, it's no surprise that regulators are scrambling to enforce additional regulatory surveillance.