The New York financial regulator wants trading firms to clarify how exactly they decide to list or delist a cryptocurrency.
The New York State Department of Financial Services (NYDFS) is set to introduce new guidance about crypto listing process for crypto companies in an effort to make it clear how the industry should self-regulate.
A spokesperson for the NYDFS told The Wall Street Journal that the guidance was needed to protect customers even when exchanges have to delist a coin.
“When we know that a coin that someone once thought was OK, when we see that new risks have emerged or the coin is being misused, we want our entities to have a way to delist the coin in a way that’s still protective of consumers and protects safety and soundness as well.”
Adrienne Harris, NYDFS Superintendent
The financial watchdog is particularly asking crypto companies to develop new policies for listing and delisting processes. The firms should focus their policies on three areas: governance for the coin-listing process, risk assessments of coins, and procedures to monitor coins.
In the delisting policy, the NYDFS asks firms to detail why exactly they decided to delist crypto, elaborating on execution plans, such as giving customers a prior notice, and modeling an impact analysis.
Requirements for the listing policy are yet to be revealed. The NYDFS will seek public comment on the legislation until Oct. 20.