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NY governor: crypto businesses should pay for their own regulation costs

Yilun Cheng

New York Governor Andrew Cuomo has proposed to amend the state Financial Services Law (FSL) so that licensed cryptocurrency enterprises would have to pay for regulation costs associated with examination and oversight.

The proposal was made as a part of the governor’s “Making Progress Happen” 2020 agenda, where he pointed out the existing discrepancy between companies licensed under the Insurance Law or Bank Law and those licensed under FSL. While the former are required to pay assessments to the New York Department of Financial Services (NYDFS) cover regulatory costs, the latter—which include crypto entities—are not.

“The Governor proposes to amend the FSL to place such entities on an even footing with other financial services companies,” Cuomo's 318-page policy guidebook said. 

The NYDFS is responsible for issuing BitLicense, a special business license for virtual currency entities operating in the state. In Dec. 2019, the agency published its plan to include two new coin listing options in its BitLicense issuance guideline. 

According to an official announcement, the NYDFS has issued two dozen BitLicenses by the end of 2019. If passed, Cuomo’s amendment would increase the operation cost for all cryptocurrency entities within FSL’s jurisdiction.