The crypto regulation move from the United States, which will have great repercussions, is known to account for 30% of the demand in the cryptocurrency markets, with the US markets making up this portion.
New York State, known as the financial center of America, holds the authority to enact legislation and set standards. An international financial institution has an obligation to obtain permission from central institutions such as the Securities and Exchange Commission (SEC) if it wishes to trade in the U.S. markets. In order for a business to operate in New York, it must obtain a license from an entity authorized by the State of New York. The institution authorized by the State of New York is the New York State Department of Financial Services.
The listing and trading of 8 cryptocurrencies have been approved by the New York financial regulator. In addition, all 3 cryptocurrencies were officially allowed to be stored. According to the published report, Bitcoin (BTC), BitcoinCash (BCH), Litecoin (LTC), Ethereum (ETH), Binance USD (BUSD), Pax Gold (PAXG), Paxos Standard Token (PAX), and Gemini Dollar (GUSD) received a listing and trading license on August 3. In addition to these cryptocurrencies, Ripple (XRP) and Ethereum Classic (ETC) are among those that have received licenses for surveillance. The NYDFS, a pioneer of the new regulations, explained, “In New York, any entity licensed by DFS to conduct virtual currency trading activities can use the coins on the list for approved transactions.” However, this can only happen if licensees notify the regulatory body before using the tokens on the list. Furthermore, it is known that the NYDFS will have the authority to remove any token from the list, limit the activity of any coin, or suspend the list completely if it wishes. NYDFS is the primary regulatory body that issues the “BitLicense,” the business license for cryptocurrencies. As will be recalled, the regulatory body started granting conditional license permission for crypto companies to list tokens in June.
This important development is seen as a significant step for crypto coins to attract investment from institutional markets.
