New York’s Department of Financial Services Released ‘Greenlist’ of Cryptocurrencies

Piyasi Mitra
Piyasi Mitra is a journalist, features writer and copy editor who has worked with The Times of India and the ABP Group, and is currently exploring content creation in the digital space.

The New York State Department of Financial Services (DFS) has recently released its ‘Greenlist’ of cryptocurrencies.

  • Any licensed entity may use coins on the Greenlist for approved purposes.
  • This move is likely to facilitate the entry of new players and standardise existing crypto operations.

The New York State Department of Financial Services (DFS) has recently released its ‘Greenlist’ of cryptocurrencies. Five years after issuing its virtual currency guidelines, the governing body has approved 25 virtual currency licenses and charters. Since DFS began authorising BitLicensees and virtual currency trust companies, some of these businesses have asked to list new cryptocurrencies, AKA ‘coins, in addition to those included in their initial DFS applications.

A glimpse into the latest Greenlist:

As per the Greenlist, beginning with custody, the approved coins include– Binance USD (BUSD), Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum Classic (ETC), Ethereum (ETH), Gemini Dollar (GUSD), Litecoin (LTC), Pax Gold (PAXG), Paxos Standard (PAX) and Ripple (XRP).

The virtual currencies approved for listing include – Binance USD (BUSD), Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Gemini Dollar (GUSD), Litecoin (LTC), Pax Gold (PAXG) and Paxos Standard (PAX).

“Any licensed entity may use coins on the Greenlist for their approved purpose(s). Note that if a licensed entity decides to use a coin on the Greenlist, it must inform DFS prior to beginning its use,” says the NYDFS website.

How does the NY DFS Greenlist work?

It’s important to note that any licensed entity may use coins on the Greenlist for the approved purposes. However, this demands that the organization seeks DFS’s permission first.

On June 24, 2020, the New York State Department of Financial Services (DFS) announced a series of steps to be undertaken by them to provide a fillip to the virtual currency space. This was primarily aimed to create an environment conducive to better access, and further clarification of rules regarding the use of digital currencies in the state.

First, the body proposed a licensing framework for virtual currency providers. In connection with this, it may also be highlighted that DFS has signed an MOU with the State University of New York (SUNY) to launch a new virtual currency program. Second, DFS has also issued a guideline regarding the self-certification of new coins. This also provides a glimpse into the process by which DFS prepares its Greenlist. Additionally, it has also introduced an online virtual currency-related platform for stakeholders.

PaxosGets all Three Tokens in Greenlist

Dan Burstein, Chief Compliance Officer at Paxos was overwhelmed by the inclusion of all of its three tokens in the green list. Soon after the news came out, Burstein issued a statement wherein he said that the company builds products that the world has never seen before and that they them for the innovators in the space, not the bad actors.

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