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New York DFS releases regulatory guidance to protect investors in case of crypto insolvency

The New York Department of Financial Services (DFS) Superintendent Adrienne A. Harris today released Regulatory Guidance to better protect customers in the event of an insolvency or similar proceeding.

“DFS’s virtual currency regulation has protected New Yorkers since 2015,” said Superintendent Harris. “Today’s guidance reminds DFS-regulated virtual currency companies of our expectations regarding the safekeeping of customer assets.”

The guidance applies to those entities the Department has licensed or chartered to custody, or temporarily hold, store, or maintain virtual currency assets on behalf of their customers.

New York’s virtual currency regulation requires entities to, among other things, hold virtual currency in a manner that protects customer assets; maintain comprehensive books and…
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