- New York is pursuing more regulatory moves to vex the cryptocurrency sector.
- On June 8, the bill will be introduced for debate in the New York State Senate and Assembly.
Letitia James, New York’s attorney general, has proposed a bill to regulate the cryptocurrency sector. It will give the New York State Attorney General more power over local crypto companies.
The development of the crypto sector in New York has been stunted by the state’s regulatory measures. New York is pursuing more regulatory moves to vex the cryptocurrency sector. Especially after implementing the BitLicense requirement and a two-year freeze on new licenses for proof-of-work crypto mining.
Excessive Regulation a Burden on Development
To further tighten regulations over crypto enterprises in New York. Attorney General Letitia James has proposed the Crypto Regulation, Protection, Transparency, and Oversight Act (CRPTO). On June 8, the measure will be introduced for debate in the New York State Senate and Assembly.
As a result of this legislation, the New York Attorney General’s Office will have more leeway in its regulation of crypto businesses. In addition, it formalizes the authority of the New York State Department of Financial Services to issue crypto licenses and regulate the state’s digital asset licensing framework.
Moreover, financial audits, refunds in cases of fraud, safekeeping of client assets, and lending or borrowing of customer funds are all mandated for crypto exchanges and corporations under the CRPTO Act. In the event of a violation, subpoenas should be issued, and a civil penalty of $10,000 per person and $100,000 for each crypto business should be imposed.
Furthermore, regulation and monitoring of the crypto market are necessary. However, excessive regulation and burden would slow the development of the innovative sector. The crypto community has already voiced their disapproval of New York’s BitLicense and mining ban.
