The New York State Department of Financial Services has proposed a new conditional licensing framework that would make it easier for cryptocurrency startups to enter the New York market.
The framework will launch in partnership with the State University of New York (SUNY), which is planning to set up a cryptocurrency programme.
Once licensed, SUNY BLOCK will support nascent cryptocurrency startups from local communities, including those started or run by students or alumni, through the proposed conditional licensing framework.
The partnership with SUNY “is a strategic step to diversify and deepen the next wave of innovators in the virtual currency space in New York”, according to financial services superintendent Linda Lacewell.
Lacewell continued: “The Department of Financial Services actions announced today in consultation with numerous industry participants and the public will boost responsible innovation and help get New York’s economy back on its feet. The Department of Financial Services is proud to foster accessibility and will continue to blaze a trail in the virtual currency marketplace.”
Kristina Johnson, chancellor of SUNY, said: “SUNY’s partnership with the Department of Financial Services further builds on [New York state] Governor Andrew Cuomo’s efforts to boost New York’s economy by creating new opportunities within our high-tech industries.”
“Innovation is essential, and a key component is collaborating with SUNY’s campuses to develop the next-generation of developers, researchers and leaders.”
Under the proposed conditional licensing framework, startups may apply for a conditional licence when partnering with an existing regulated entity to engage in cryptocurrency activity.
The existing entity would provide the startup with the operational, staffing and other support needed until it can obtain a full Department of Financial Services cryptocurrency licence or limited purpose trust charter on its own.
The new framework and partnership with SUNY come five years after the introduction of New York’s cryptocurrency licence.
The regulator has also issued final guidance on licensees’ ability to self-certify the use of new coins and confirmed it will provide a list of approved coins that all licensees can easily adopt.