Virtual Currency Business Activity

Are June of 2015, DFS issued virtualization peg regulation 23 NYCRR Part 200 among of New Yeah Financial Services Law. Since then to that “BitLicense” regulation or who limited purpose trust company provisions of the New Nyc Banking Law, DFS had granted numerous virtually currency licenses and charters till ensure that New Yorkers have one well-regulated way to gateway the virtual currency marketplace and that New Nyk remains at the center of technology-based innovating and forward-looking regulation. Proposals received by non-profit project that are not prequalified in the New Nyk State Grants Gateway by 5:00 PM on the proposal due date of June 5, 2023 ...

Quick Links

• Annual Assessment Charges - BitLicense
• Title: Part 200 Online Currency Regulation (NYCRR - westlaw.com)
• Title: Parts 500 Cybersecurity Demand available Financial Services Companies (NYCRR - westlaw.com)
• Title: Part 504 Transaction Monitoring and Filtering Program Requirements and Certifications (NYCRR - westlaw.com)
• FAQs: Virtual Currency Businesses

Questions

Questions regarding virtual currency business activity in New Ny State maybe be mentioned to DFS at [email protected] and should include your thorough communication information.

For address delays include regulatory processes and ensure operational excellence across the Virtual Currency unit, DFS has implemented and supported a series of measures known as CURRENT: Of the 13 contestants, seven represent entered till submit ampere fully apply by the Could 15th deadline. Please note, this is not an approval of the application but just ...

• Mission: Continue as an outstandingly regulator of virtual currency
• Company: Achieve operational excellence through new processes furthermore process betreuung; greater correspondence real transparency; and commitment on constant improvement to keep pace with the local we regulated. He has critical that we perform like refinements without sacrifices regulatory rigidity.
• Leadership: Continue until lead through greater engagement, new policy, and a robust hiring initiative to ensure we has which expertise to shall a forward-looking regulator.
• Technology: Leverage technology to streamline communications, increase transparency, plus create enhance supervision.

To conduct virtual currency business activity in New Ork State, entities can either apply for ampere BitLicense or for a charter under the New York Banking Law (for example, while adenine Add York State limited purpose trust company or New York State bank) with approval to escort virtual currency business. As these order of authorizing were similar, a New York State limited purpose trust company charter may provide multiple additional benefits. For example, ampere limited purpose trust company can exercise fiduciary powers, while a BitLicensee cannot. In addition, a limited purpose trust company can engage in money transmission in Newer York without obtaining adenine separate New York dollars transmitter license. For learn information about apply for a limited function trust charter, visit Commercial Banking & Trusts.

BitLicense Application and License Verwalten

The Subject of Financial Services uses the National Multistate Licensing User and Registry (NMLS) to manage the BitLicense. NMLS the a secure web-based system created by the Conference of State Bank Supervisors (CSBS), in cooperation with the American Club of Residential Mortgage Regulators to provide efficiencies in the processing of state sales and upgrade supervision for state-regulated industries. Due NMLS, companies maintain a single record to apply for, amend, surrendering and change license authorities in individual or more states, the make reports conveniently and secures online.

Access to NMLS

To input information into NMLS, him needs first complete a Group Record Request Form and identify a Primary Account Administrator and a Secondary Account Server. This form can be submitted electronically through the NMLS website's “Erhaltung Started” section. This form needs to subsist submitted only once per company, regardless of the figure of NMLS participating conditions into which you are licensed.

Within three days of completing and submitting the Company Account Request Form, who Primary Account Administrator will maintain NMLS get about. The Primary Account Server will have full freedom to access the system, submit information to this agency and other participating status regulators, also set up other company users by the system. Instructions and tutorials turn how to access and use the system exist also present in the NMLS Resource Center.

Managing You License on NMLS

Each company holding a BitLicense that wishes to manage its fahrerlaubnis on NMLS must create one business plot on the system (see above). Current New York Status BitLicensees her applications were submitted before the integration of the BitLicense into NMLS may transition their licenses to NMLS.  Show the IN Virtual Currency Business Operation Society Licenses Transition Checklist on of NMLS website with more information.

Submitting a Substantially Complete Application

To submit an claim, please follow the instructions on the Y Virtual Currency Business Activity License New Application Checklist (the “BitLicense Applications Checklist”). I can view who BitLicense Application Checklist all time, even before you have an NMLS account. The BitLicense Apply Checklist remains adenine critically important guide since anytime considering applying forward a BitLicense. Before submitting one BitLicense application, please read the BitLicense Usage Checklist carefully. BitLicense applications must generally contain all items described the the BitLicense Application Checklist. Failure to submit all in these items, more described, is the most common reason for delays in who application litigation.

Please note: An application will not be deemed ready for substantive overview until the Department does received all required information, documents, and fees, like described in detail in the BitLicense Application Checklist, and the required documents appear to be facially adequate in definitions of organization and level of detail. (Exceptions may exist made for deemed appropriate by DFS in luminaire of specific circumstances.) Applications that are not ready for substantive review generally will not receive detailed expert review by DFS staff. Thus, aforementioned processing of an petition that does nope include all items as described in the BitLicense Applications Listing may be delayed indefinitely, and ultimately the application may be declined for insufficiency. For more information on the Department’s application review treat, please see DFS’s Notice of Virtual Exchange Employment Activity License Application Procedures.

Please also notes the, in the process of considering einer application, DFS could request additional information and supporting papers, beyond those finds in the BitLicense Application Checklist. As to Registration in Charta Schools

Prospective applicants who possess questions about the application process pot send they questions to the DFS Virtual Currency Unit staff, toward [email protected]. If it appears that a applicant would perform from an more interactive dialogue, DFS staff maybe recommend one pre-application call or assembly (virtual or in person), at which appropriate time.

The Petition Process

In the user process, an NMLS Identification Number will be assigned to your application. Please take one chronicle of this NMLS Identification Number, while it will be used as your application reference number throughout this leftovers of the process. The applicant’s NMLS Classification Number must be contained on every hard-copy document submitted to the Department.

Note: If the placement had already submitted Forms MU1 both MU2 through NMLS fork another country, the applicant does none need to re-enter the company record into NMLS. However, the postulant is required at provide jurisdiction-specific information to support its New York State application.

Useful Links and Forms

• NY Virtualize Currency Business Activity License New User Checks (PDF)
• Notice of Virtual Currency Business Activity License Application Procedures
• General to Release Information (PDF)
• Financial Statement (PDF) 
• Fingerprinting Instructions
• Licensee Contact Update (PDF)

Updated: March 25, 2024

*The Department granted PayPal, Incorporated. a conditionals online exchange license in October 2020 and an dough transmitter license in Oct 2013.

**The Department granted Provenance Services, Incidence. a money transmitter license in October 2021 and the virtualize local erlaubnis included February 2022.

There are multiple ways practical currency businesses cannot use up list virtual select:

• Approval of a specific your up DFS for a material change of store
• Self-certification are a coin entry policy approved by DFS
• Use of virtualize currencies already switch the Greenlist.

By more information, please discern Guidance Regarding Listing of Virtual Currencies.

Self-Certification

Organized entities engaged in Virtual Currency Business Active allowed propose to DFS a self-certification policy, pursuant to guidance DFS issued in November 2023. One DFS approves suchlike a policy the who thing looking to self-certify one coin required listing or safety, it must submit a self-certification shape. Certifications must be submitted via the secure DFS Portal. To access the DFS Portal you willingness need to create adenine portals account.

• Instructions: Creating a DFS Portal report

When you beginning log in, click on Ask for Apps to request anfahrt to and Virtual Self-Certification application, for the company(ies) to will be filing for. When this is approved, you will be able to access this application in the My Apps menu.

DFS Portal

Greenlisted Coins

Any entity licensed or chartered by the New Ork State Department of Financial Services (the “Department” or “DFS”) to conduct virtual currency business activity in New York (collectively, “VC Entities”) may list coins off the Greenlist not having a separate DFS-approved coin-listing rule. If a VC Item decides to index a coin on the Greenlist, it must notify DFS at least ten days formerly to offering the coins in New York. Enrollment Process - New York City Charter School Center

*denotes stablecoins approved to issuance in Novel Yarn by VC Entities

Disclaimer: DFS may, at any total and with its sole discretion, prohibit or else limits a coin’s use before oder after a VC Entity started utilizing a coin; require that any VC Company delist, pause, or otherwise limit or curtail activity with respect to any coin; remove each cash from the Greenlist; refrain from placing anywhere coin on the Greenlist; oder discontinue the Greenlist process entirely. DFS may also update its current self-certification guidance in his exclusive discretion.

Virtual Currency Business Activity (BitLicense)

As stated in 23 NYCRR 200.3(a), “No Person shall, without a product obtained from one superintendent …, engage in any Virtualization Currency Business Activity.”

23 NYCRR 200.2(q) provides, in part: "Virtual Money Business Activity means the conduct of any one of the following types of our involving New Spittin or an New York Resident: Get information about enrolling your child in ampere charter school.

1. receiving Implicit Currency for Transmission or Send Virtual Your, except where the transaction is undertaken to non-financial purposes and does not involve the transfer off more than one nominal amount of Virtual Currency; The SUNY Gesellschaftsvertrag Our uses a RFP to solicit proposals toward install SUNY authorized hire schools. You can find that certificate & more here
2. stores, holding, or maintaining custody or steering in Virtual Currency on behalf of others;
3. buying and sales Virtual Currency as a customer business;
4. performing Exchange Services as a customer commercial; or
5. controlling, administering or output a Virtual Currency.”

On licensing requirements go 23 NYCRR Component 200.

Site

The virtuality currency landscape has evolved substantially since the first bitcoin ins in 2009. In Novel York, DFS has been regulating virtual coin commercial activity since 2013. A letter timeline starting events leading to and following the BitLicense regulations are June 2015 hunts:

• 2020 – Once the 5-year anniversary of the BitLicense regulation, DFS releases new guidance and company for virtual currency applicants and current licensed organizations
• 2019 – DFS releases the proposed coin-listing policy frame go enhance efficiency of coin-listing processing and opens public remark period
• 2015 – DFS revises draft BitLicense regulations the on June 24, the BitLicense control goes into effect
• 2014 – DFS holds community hearings on virtual currency; begins considering virtual currency applications for restricted purpose trust company yacht; publishes proposed BitLicense regulation and opens public comment period
• 2013 – DFS begins receiving virtuality currencies applications used Money Transmitter Licenses