As the world prepares for the worst regarding the fast spreading coronavirus, crypto firms with BitLicenses to operate within New York have up to 30 days to yield a comprehensive preparedness plan to combat the deadly viral pandemic.
According to a letter sent on March 10 by the New York Department of Financial Services (NYDFS), the contingency plan must encompass the employee protection measures, the blueprint for minimising the intensified cyber threats, disaster communication strategies on top of operational procedures at critical moments.
In particular, the regulator is placing particular emphasis on the fact that hackers might capitalize on the spreading pandemic to attack. The NYDFS has urged crypto firms to install robust security measures in place to help evade únder the radar hacks’.
In addition, the digital currency firms are expected to table their so called ‘preparedness plan’ within a time frame of 30 days or if possible; ASAP. According to the letter:
“COVID-19 has already had adverse economic effects domestically and globally. It is critical that each regulated entity establish plans to address how it will manage the effects of the outbreak and assess disruptions and other risks to its services and operations.”
As the other firms are working a plan on how to conduct themselves successfully during a time of global turmoil; major cryptocurrency exchange firm Coinbase did share its emergency plan back in February.
Coinbase has offices in Japan, Ireland, the United States and U.K. The firm has a plan for the three phases of coronavirus. As per its plan, in case we get to the final phase, Coinbase expects its employees to carry out their office work remotely from their homes. Currently, the crypto firm has hindered travels to China, Hong Kong, Japan, Italy, and South Korea.
Global Markets bleeding
As traditional markets and stocks suffer their deepest slide in 30 years, the cryptocurrency market has suffered an extreme plunge due to the spread of COVID-19. The value of BTC dropped by more than 40% percent within 48 hours. The price fell from almost $9,000 to a rock bottom price of under $5,000 within two days. Furthermore, many events both crypto related and non-crypto related have been canceled as a result of the growing concern of COVID-19.