New York Attorney General Letitia James reportedly propose The new law expands the authority of her agency to regulate the cryptocurrency industry.
Known as the Cryptocurrency Regulation, Protection, Transparency, and Oversight Act (CRPTO), the bill would give the Attorney General’s Office broader enforcement powers over crypto firms operating in New York and confirm the authority of the New York State Department of Financial Services ( NYDFS) licenses and oversees digital asset licensing in the state.
New York Attorney General Proposal #cryptocurrency Regulation, Protection, Transparency and Oversight #Behavior https://t.co/MbjvA6NOQj
— Kyptos (@azcoinnews) May 7, 2023
The CRPTO Act aims to solve the problems of the digital currency industry by requiring exchanges to independently audit their financial statements and compensate customers who have been scammed. Additionally, the proposed law seeks to limit conflicts of interest by prohibiting the same person from issuing tokens and owning a marketplace for such tokens.
The bill would also require companies to have an identity verification (KYC) process and not use the term “stablecoin” to market cryptocurrencies unless their value remains one-to-one. Dollar. Violations of the law can result in civil penalties of $10,000 per violation for individuals or $100,000 per violation for corporations, as well as the right to shut down businesses suspected of being fraudulent and illegal.
NYDFS, the regulator for more than 30 cryptocurrency companies, currently issues “BitLicenses” to companies and monitors and enforces actions against licensed companies. In January, they reached a $100 million settlement with Coinbase over charges of violating anti-money laundering laws. Last August, the agency fined Robinhood Markets Inc.’s cryptocurrency trading arm $30 million. Alleged violations of anti-money laundering and cybersecurity regulations.
Ms James’ office has filed lawsuits against several crypto platforms, including KuCoin and CoinEx, alleging they were not registered as stock and commodity brokers. The proposed legislation is the latest by the attorney general to regulate the cryptocurrency market and will be brought before the New York State Senate and Assembly during the 2023 legislative session.
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