The New York Regulator has Issued a New Customer Protection Policy to Cryptocurrency Custodians
- The New York Department of Financial Services (NYDFS) has issued new guidelines to assist clients in securing their money in the cryptocurrency market.
- The new guidelines demand that customers’ assets be kept separate from the company’s funds on their storage platforms.
- The new regulation became essential due to a succession of bankruptcies in the business, which caused numerous consumers to suffer for no fault on their part.
- The regulator has ordered that both off-chain and on-chain asset storage must ensure that funds from both categories are not combined.
- The goal of the new regulation, as stated in a document titled “Virtual Currency Guidance” signed by Adrienne A. Harris, NYDFS Superintendent of Financial Services, is to stress solid custody and transparency practices.
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