New York Increases Reporting Requirements for Crypto Companies to Tackle Fraud

08.02.2018

In a bid to prevent fraud and market manipulation, the US state of New York has strengthened reporting requirements for companies offering cryptocurrency related services, including ICOs.

In a statement released Wednesday, New York State Department of Financial Services (NYDFS) distributed new requirements for companies operating under the BitLicense regulatory framework or state permission for money transmission.

The new guidance requires crypto service companies to evaluate “the full range of fraud-related and similar risk areas” in order to provide additional safeguards for both consumers and investors against fraud and market manipulation. Cryptocurrency firms are also now mandated to investigate fraud or illegal activity followed by a public statement describing what steps will be taken to address the alleged fraud or wrongdoing.

Superintendent Maria Vullo said in a statement that she hopes that the new measures will “guard against fraud” and direct cryptocurrency companies to “be extra vigilant about manipulation” so that the market “can evolve with strong regulatory supervision."

The DFS' new guidance adds to New York's BitLicense framework, which was rolled out in 2015. The BitLicense is essentially a business license to provide virtual currency services and is limited to the territory of New York or activities undertaken by a New York resident. So far, only 6 companies have been awarded a BitLicense to provide cryptocurrency services in the state of New York.

Latest news

24.05.2018
Operation Cryptosweep Targets ICO and Crypto Scams in US and Canada US and Canadian securities regulators joined forces to launch a far-reaching crackdown on initial coin offering (ICO) and cryptocurrency scams across North America in an operation dubbed “Cryptosweep.”
23.05.2018
ICORating Technical Audit of Ethen ICORating has conducted a full technical audit of Ethen, a cryptocurrency and altcoin trading platform, analyzing the smart contract source code for potential vulnerabilities.
23.05.2018
ICORating to Speak at Crypto Forum for Hotcoins in Seoul ICORating will speak at the Crypto Forum for Hotcoins, set to take place in Seoul on May 24 at the Le Meridien Seoul Hotel. The forum will feature a startup pitch competition as well as coverage by South Korean business news channel SBS CNBC.