Top Updating NY Regulate Crypto Guide After Announcing His Removal

Adrienne Harris, the Superintendent of the New York Department of Financial Services (NYDFS), announced updates on the department’s guide if a crypto company was worthless, following the announcement that he would go down from the paper.

In a notice on Tuesday, Harris Says The NYDFS has updated the guide initially announced in January 2023 to better protect users “in the event of a disappointment or similar continuity.” According to the guide, the financial regulator focuses on clarifying what “acceptable sub-custodians,” guards for crypto custody, and “allowable use of customer properties.”

“As we see the use of more sub-custodial relationships in the digital asset space, this guide provides further clarity on how those relationships should be managed,” Harris said.

Harris announced updates less than 24 hours after New York Governor Kathy Hochul NYDFS superintendent says dropped on October 18, serving in the department for almost four years. Kaitlin Asrow, an executive deputy superintendent, will replace Harris as acting superintendent, maybe up to a permanent head.

Related: Bullish Paves Way for us launch with New York Bitlicense

Guide for Crypto users

Among the NYDFS updates to 2023 guidance is that carers are required to keep users’ crypto in “separate onchain wallets” or “one or more omnibus onchain wallets” with internal Ledger accounts.

It added that carers should not use customers’ crypto as themselves, for example, to secure credit.

As New York’s financial regulator, the NYDFS is responsible for the administration of crypto companies that operate in the state or offers products or services to residents. The department launched its Bitlicense program in 2015, which is required for any digital asset business in the state.