A proposal has been presented by the New York State Department of Financial Services (DFS) to amend state legislation, also to charge companies in the crypto sector as part of their regulatory framework.

Under the Financial Service law (FSL), DFS has been continuously charging regulated non-crypto organizations for expenses and costs to keep watch over them. 

The DFS Superintendent, Adrienne Harris, took this initiative by making an announcement on December 1 through the DFS website. Their proposal is open to public opinion and comments.

Cryptocurrency regulation was enacted in 2015. However, FSL did not mention a provision for crypto companies. This may be the reason that Harris is trying to make a bridge between the states’ traditional financial institutions and virtual currency enterprises.

DFS Superintendent believes that the funds collected through the charge fees will help build a crypto team within the DFS organization and also help it to expand for more regulatory work to safeguard users.

As she opined, “Through licensing, supervision, and enforcement, we hold companies to the highest standards in the world. The ability to collect supervisory costs will help the Department protect consumers and ensure this industry’s safety and soundness.”

The companies holding BitLicense, a special license provided to businesses by NYDFS, will be eligible for the assessments, enabling them to operate in New York. Currently, only 22 companies hold the BitLIcense, a renowned fact that is tough to obtain.

After the collapse of multi-billion-dollar crypto companies such as Solana and FTX, it has become crucial for regulators to impose and improve regulatory frameworks.

The comment period of the 10-day pre-proposal for the public will start from Thursday with the draft rule published. The draft regulation will be published in the state register after a 60-day consultation period.