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The New York State Department of Financial Services (DFS) has updated its regulatory framework for virtual currency (VC) businesses, introducing stringent measures that venture capital firms must follow when transacting with digital coins. This move aims to enhance governance and compliance within the industry.

In addition to these requirements, as of today, entities like Gemini and Robinhood (NASDAQ:HOOD) are obligated to have DFS-approved procedures for cryptocurrency listings and delistings. These procedures should include safety protocols and customer protection measures tailored to each entity's unique business model. A comprehensive coin review process is required, taking into account the specific features of each coin.

This update follows the Prior Guidance issued by DFS on June 24, 2020, which outlined the initial expectations for virtual currency businesses. Until the final approval of their delisting policies, VC entities are limited to listing only a select few tokens from the greenlist—which has been reduced from over twenty tokens to just eight, including Bitcoin. This restriction underscores the DFS's commitment to maintaining a secure and compliant virtual currency market in New York State.

https://www.investing.com/news/cryptocurrency-news/nydfs-tightens-virtual-currency-regulations-for-vc-firms-93CH-3239339