New York State Attorney General Proposes Nation-Leading Crypto Regulations

1 year ago 77

“Crypto Regulation, Protection, Transparency and Surveillance Act”

On the 5th, New York Attorney General Letitia James presented a proposal for a comprehensive crypto asset (virtual currency) regulation that would lead the nation.

It will make the crypto industry more transparent, prevent conflicts of interest, and impose the same investor protection measures as other financial services. Cryptocurrency exchanges have included independent public audits and requirements to reimburse users who have been victims of fraud.

Regarding the Crypto Regulation, Protection, Transparency and Surveillance Act (CRPTO), James said:

With fraud and dysfunction rampant in the crypto sector, we need to bring law and order to this multi-billion dollar industry.

Investors in New York should feel secure that there are safeguards in place to protect their funds. All investment firms are regulated to be responsible for their investors’ funds, and cryptocurrencies are no exception.

This common-sense regulation (to the financial industry in general) will increase transparency and oversight of the cryptocurrency industry and enhance the ability of authorities to crack down on legal violations.

The main points of the bill are as follows.

stop conflicts of interest
require financial statement disclosures
Strengthening investor protection

Impose civil penalties and other damages of approximately ¥1.35 million ($10,000) on individuals and ¥13.5 million ($100,000) on companies for violating the law, and shut down businesses that committed fraud. Things to do were also included.

It also codifies the authority of New York state regulators to grant licenses to cryptocurrency operators.

Proposing reimbursement to victims of unauthorized outflow

The main ways to prevent conflicts of interest are:

Block cryptocurrency brokers and marketplaces from trading on your account
Marketplaces and investment advisors are prohibited from holding client funds
Brokers are prohibited from lending or borrowing client assets
Prevent operators from having single-handed ownership of multiple activities such as cryptocurrency issuers, marketplaces, brokers, investment advisors, etc.

Regarding financial statements, it requires an independent audit and requires public disclosure of audited financial statements. Disclosure of risk information and token listing standards will also be imposed.

In terms of investor protection, it also requires operators to reimburse users for lost funds in the event of fraudulent outflow of funds from the platform.

Attorney General James’ new bill, like the one above, is gaining support from some state legislators. James’ statement included the names of 12 Democrats.

Who is the New York State Attorney General?

Chief Legal Officer of New York State. He serves as a guardian of the legal rights of New York’s citizens, organizations and natural resources. The Attorney General’s Office employs more than 700 attorneys and more than 1,800 other staff.

Cryptocurrency Glossary