New York Department of Financial Services has announced the creation of a new unit that would be focused on regulation and monitoring of the cryptocurrency segment in the state. The regulator posted notice on July 23.
"The financial services regulatory landscape needs to evolve and adapt as innovation in banking, insurance and regulatory technology continues to grow," Superintendent Lacewell said.
The new Research and Innovation Division is expected to "support internal transformation and market innovation" and thus making sure that the financial authority is abreast with the fast-growing and changing financial market environment regardless of the sector. Moreover, it is planned that the new unit will also guarantee that New York is still the best region for innovations.
Since now, the issues connected with BitLicense in the state will be settled by the new unit. As a result, it will be the authority that issues the licenses for the companies that want to run crypto business in New York.
Superintendent Lacewell noted:
"This new division...as the regulator of the future, allowing the Department to better protect consumers, develop best practices, and analyze market data to strengthen New York’s standing as the centre of financial innovation."
For reference, NYDFS has been the crypto regulator in New York since 2015. For now, the authority has granted about 20 BitLicenses for operations in the state.