The New York State Department of Financial Services (NYDFS) is hiring a policy specialist to focus on crypto and AI policy, including digital currencies, DeFi, and AI in financial services.
That’s why NYSDFS is hiring for its Innovation Policy Unit to develop policies for these innovations.
As such, this role will be responsible for engaging new and significant policy issues within the context of the financial environment.
In the same ad for the policy specialist position, the work focuses will include problem-solving across traditional markets, crypto and DeFi, and artificial intelligence and machine learning in finance.
The evolution of BitLicense and its impact on crypto and AI policy
The New York State Department of Financial Services (NYSDFS) implemented the regulatory framework known as BitLicense in August 2015 in order to oversee the operations of virtual currency businesses within the state.
After that, they have been refreshing it more frequently to monitor the cryptocurrency exchanges and service providers. Leading industry players such as Bitfinex, Kraken, and Paxful have had to pull out of New York due to these standards.
On November 15, NYSDFS has introduced new regulations that demand approval for the coin listing and the elimination of the existing ones from the platform. The NYSDFS will analyze elements including technology, operations, cybersecurity, risks associated with the market, adequacy of liquidity, and any unlawful activities.
Last month in January New York State Comptroller Thomas DiNapoli was critical of how NYSDFS approaches the BitLicense. He said that he found some problems with the security checks for potential licensees, especially because some of the fingerprinting processes were done before applications were given approvals.
It lacks evidence that the NYDFS ensures that applicants abide by tax compliance or possess a minimum net worth.
The members of the Innovation Policy Unit will be required to engage in qualitative analysis and quantitative analysis in order to assist the DFS in arriving at sound policy decisions.
On 30th May, NYSDFS established new consumer protection regulations applicable to crypto exchanges. Supervisor Adrienne Harris stated that exchanges are required to begin documenting these facts and gather customer responses beginning in the third quarter of fiscal year 2024 and this data must be shared with DFS by November 1st.
“This guidance outlines clear expectations for a positive customer experience, which benefits both consumers and business.”
Right now, 32 crypto exchanges have either a BitLicense or a trust charter.
