- New York’s Financial Regulator plans to digitize financial reporting based on crypto companies.
- Financial regulators need information on the economic conditions of the organisations under their control.
- The initiative will unify fintech and crypto professionals.
New York’s Financial Regulator is planning to digitize financial reporting based on crypto companies.
The scheme will give the city’s financial services immediate access to data provided by crypto firms under its control.
The plan was made known in a press release on 15th October by Linda A. Lacewell, New York Department of Financial Services (NYDF)’s Superintendent.
The project will centre on cryptocurrency businesses at the outset, owing to their digital expertise.
In a world that is becoming more and more digital, financial regulators need information on the financial affairs of organisations they manage. COVID-19 brought this to the surface by hindering reporting for most corporations as they had to abide by social distancing rules.
Alliance for Innovative Regulation and the Conference of State Bank will collaborate with the New York financial regulator on the proposal.
This measure will unite fintech and crypto experts to make digital reporting feasible. NYDF will use the resolutions to form a general guideline.
The Financial Regulator’s stance on cryptocurrencies
NYDF inaugurated BitLicense in 2015, a system that deals with all digital currency activities related to New York. All New York corporations and citizens that use online currencies ought to apply for the BitLicense.
With rigid criteria in place, companies seldom qualify for the BitLicense. Those who pass the benchmark have to conform to strict anti-money laundering laws, cybersecurity, and others.
Established in 2011, NYDF is a relatively new administrative division. It supervises all monetary services and products in New York. NYDF aims to keep abreast of the financial industry’s ever-changing scenery and safeguard New Yorkers and markets from fraud.