I love it or leave it, New York State was a force in the encryption organization.
Ten years ago, the country established the first comprehensive organizational framework for US companies to companies that deal in cryptocurrencies, including the main consumer protection and compliance to combat money laundering and cybersecurity.
In September 2015, the New York Financial Services (NYDFS) released the first Bitlicense to run the Internet to the Internet, allowing the company to conduct a commercial activity for the state currency in the state. Ripple Markets got the second Bitlicense in 2016. Circle and Ripple reached giant players in the Cryptocurrency and Stablecoin global industry.
Today, NYDFS organizes one of the largest curls in the world, often it is Cited as the Golden Standard To regulate encryption in the United States.
Against the background in which Ken Kogel, Deputy Supervisor of NYDFS currencies appeared virtual currencies, at the Cornell Tech conference on April 25 to discuss a “new era of American innovation in encryption”.
“We set the handrails”
Most companies that have reached NYDFS for Bitlicense are protected companies, often new in the financial world and are not used in dealing with organizers. Often they do not fully understand that they control the origins of another person, as Kojil indicated at the New York City conference, adding:
If you want to start business and the only person you put in danger is your own business, this is not really anxious. We only exist because you sell something to someone else, and keep controlling this product for someone else.
“We have put the handrails,” said Kogel, the mission of the industry is to know how to stay inside that handrail. NYDFS cannot think of each element that will make mistakes at work.
These days, more traditional financial institutions are also interested in encryption, as added. Large banks have started providing encryption nursery services, and others began to provide settlement services. Traditional [bank] The model is brought to encryption [sphere] “Because it makes people feel comfortable,” said Kogil.
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Although NYDFS has released only 22 assumptions so far, it appears to be ready to deal with a wave of applications from tradfi companies if they are realized. “On the basis of the individual, we have more supervisory resources focusing on encryption companies than we do for all of these others [non-crypto] Cogel said that companies include 3000 banks, insurance companies and other financial institutions.
Dubai encryption organizer
The direct road that brought Couthi to NYDFS was not in July 2024. It has spent the past 12 years in the Middle East in the work of the Financial Services Authority in Dubai, and eventually became the head of the agency to oversee technology risks.
And remember that “Nazoua” took it to the Middle East in the first place. “I went for three years and stayed for 12 years,” I spent that time in the first place as official fees organizing important international banks, or G-Sibs. There, he was invited to develop a model of supervising the cryptocurrency, and thus “spent the past six years organizing the cryptocurrency in the Middle East.”
In the end, an opportunity to return to the United States arose, where he was working earlier as a manager in the Market Regulatory Department on the Chicago Council options. Before that was a choice trader. “He has taken the new task with NYDFS, among other reasons, because” the world is looking for New York and the world is looking for DFS “when it comes to organization,” he told Cornell Technology.
The head of the painting, Neil Desulfa Kghail, asked how the list looks good. “A good organization is the organization that does not prohibit activity but applies the appropriate handrails that reduce the risks to customers,” he said. One cannot completely eliminate risks; To do this would remove all commercial activity.
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The organization compares to the pendulum constantly swinging between two parties: very lenient and very restricted. “The pendulum has been swinging to one side of the end of the list in the past few years [i.e., too restrictive]. Now swing. “
What does the state organizer make for the frantic organizational activity in Washington, DC at the federal level these days? There seem to be some “positive background winds” behind cryptocurrencies and niches, and Diselva, the same financial manager in the PayPal digital currencies and transfers.
Washington pipeline
“For DFS, it has worked to a large extent as usual,” commented. This is because New York State has long has encryption rules in place. In fact, “a lot of what is happening now in Washington” – at the federal level – “is affected by what we have done over the past ten years” at the state level.
The government agency has communicated regularly with the forces-with US capital on digital currencies. “We have a team sitting practically in Washington and has discussions with members of Congress, talking about what we think will work and what will not work.”
NYDFS ‘encoding initiatives affected other American countries. For example, California’s encryption legislation (AB 1934) depends on the law in late September 2024, based on Bitlicense in New York State and its limited regulations for purposes confidence for digital currency companies-although the requirements of Bitlicense are relatively strict.
https://www.youtube.com/watch?
Not everything in the encryption industry has been moved in the state’s encryption licensing system, with an expensive Bitlicenses advertisement. Her request fees are $ 5,000-very strict with its detailed protocols to combat money laundering, required reviews and a general turn of innovative obstacle to the original encoded companies. Cracks exchange encryption It came out of the state When New York has implemented Bitlicense requirements, for example.
Desulfa from Coghill was asked how to actually look NYDFS to decentralized protocols compared to how to see the central financial institutions organized historically.
It is important to look at the actual purpose of the product, as Kogil answered. What is its inherent intention? Who serves, and what are the good and bad effects? “There are a lot of innovations that are created without any purpose but to earn a lot of money from its customers,” Cogel said. “Thus, we have to liquidate these.”
“We are driven to look at everything in a dark and dark way. It is not our duty to look at and say,” Yes, this is wonderful. “Instead, they study a potential product and ask,” How is this bad for efficiency? “Or” How is this bad for inclusion? ”
How do you think things will play at the federal level this year with regard to encryption legislation and nails?
What will happen in the end [in Washington, DC]? who knows? We can know six months from now. We can know things next week. Things have changed very quickly.
Meanwhile, “We are still accepting applications. We are still processing these applications. We are still focusing on our basic goals: market protection, consumer protection, and innovation support.”
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