New York State Senate Has Authorized NYDFS to "Evaluate" Cryptocurrency Companies

"The cost of each examination of the affairs of any person engaged in the business activities of a virtual currency under this chapter shall be borne and paid by the regulated person so examined," the budget text states. "However, the Superintendent may waive such fees for good cause, subject to the approval of the Comptroller, in the discretion of the Superintendent."

NYDFS controls the most established cryptocurrency regulation in the United States through its virtual currency licensing system, commonly referred to as BitLicense. Companies that want to offer cryptocurrency trading or wallet services to New York citizens must first obtain a BitLicense.

NYDFS Director Adrienne Harris said in a statement that the budget will "revitalize our state's economy and build a stronger New York.

"The budget includes a new ability for the department to collect regulatory fees from licensed virtual currency businesses, just as it already does for banks and insurance companies." New York was the first state to begin licensing and monitoring virtual currency businesses as we continue to attract more licensees and the most crypto start-up capital in the country. "With this expanded authority, the department will be able to build a team with the capacity and knowledge to best regulate and support this fast-growing business," she explained.

In two months, the new budget provisions will take effect.