Regulation News

Breaking: New York Proposes Crypto Regulatory Bill “CRPTO”

New York Attorney General Letitia James proposes "Crypto Regulation, Protection, Transparency and Oversight Act" (CRPTO) bill.
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Breaking: New York Proposes Crypto Regulatory Bill “CRPTO”

New York Attorney General Letitia James on Friday proposed a state law to regulate the crypto industry. It will broaden the New York State Attorney General Office’s authority over crypto firms that operate in New York.

New York regulatory actions against the crypto industry have diminished the growth of the sector in New York. After introducing the BitLicense requirement and a two-year moratorium on new permits for proof-of-work crypto mining, New York is taking further regulatory actions to vex the cryptocurrency industry.

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New York Proposes Bill To Regulate Crypto

New York Attorney General Letitia James proposes the Crypto Regulation, Protection, Transparency and Oversight Act (CRPTO) bill to further tighten rules over cryptocurrency companies in the state. The bill will be submitted for consideration in the New York State Senate and Assembly legislative session starting June 8.

The bill will increase the New York Attorney General Office’s enforcement authority of cryptocurrency firms. In addition, codifying the New York State Department of Financial Services’ jurisdiction to license crypto firms and oversee the state’s digital asset licensing regime.

“Rampant fraud and dysfunction have become the hallmarks of cryptocurrency and it is time to bring law and order to the multi-billion-dollar industry. These commonsense regulations will bring more transparency and oversight to the industry and strengthen our ability to crack down on those that don’t pay respect to the law.”

Also Read: Ethereum Gas Fees Hit Record Levels Amid PEPE Meme Coin Hype; Flips SHIB, DOGE

Under the CRPTO Act, crypto exchanges and firms will be required to publish audited financial statements, reimburse customers in case of fraud, keep custody of customers’ funds, and lend out or borrow customers’ funds. In case of violations, issue subpoenas and impose civil penalties of $10,000 per violation for each individual or $100,000 per violation for each crypto firm.

The cryptocurrency industry is in need of regulation and oversight. However, over-regulation and burden will restrict the growth of the innovative industry. The crypto industry had criticized New York’s BitLicense and moratorium on cryptocurrency mining.

Also Read: Coinbase Legal Chief Takes Pre-Emptive Strike Against US SEC

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NYDFS Strict Crypto Regulatory Stance

The NYDFS has maintained a strict regulatory stance against the crypto market recently, bringing fines and enforcement against crypto companies.

On May 3, the New York State Department of Financial Services fined bitFlyer USA $1.2 million for violating cybersecurity regulations. In February, the regulator’s regulatory action against Paxos caused major challenges for Binance after it ordered Paxos to stop minting BUSD. Coinbase, BitPay, and Robinhood among others were also fined by the NYDFS maintaining its strict stance.

It also introduced the Adoption of Virtual Currency Assessment Regulation to collect supervisory fees from licensed cryptocurrency firms operating within the New York state.

Also Read: New York Regulator Fined Another Crypto Firm For Violating Laws

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Varinder Singh

Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.

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Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
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