The Ripple-linked XRP and Dogecoin, along with a number of other popular digital tokens, have been removed from the “greenlist” of recognized cryptocurrencies maintained by the New York Department of Financial Services (DFS).
The New York Department of Financial Services (DFS) has increased its regulation of the cryptocurrency industry as part of its continuing VOLT project. Several digital tokens, including Ripple’s XRP and Dogecoin, were removed from the DFS’s list of approved cryptocurrencies in a recent update.
New regulations clarify the department’s listing and delisting requirements for controlled coins, which corresponds with the removals.
DFS Chief Executive Officer Adrienne Harris issued a press statement detailing new procedures for listing coins.
Rules for enterprises catering to retail clients have been introduced, and the threshold for assessing the danger of introducing new cryptocurrencies has been raised. Companies that had a DFS license were able to vouch for and add digital assets for storage or trade without outside oversight before these modifications.
The new rules eliminate this discretion and require the DFS to take a more proactive role in supervision. New York’s crypto firms may be affected by the new greenlist’s exclusion of widely used cryptocurrencies like XRP and Dogecoin. The list currently includes just eight tokens.
Thanks to its BitLicense initiative, New York has emerged as a leader in the field of crypto regulation. The goals of the 2015-introduced BitLicense are to safeguard consumers, maintain orderly markets, and stop illegal funding activities related to cryptocurrencies. The initiative has had its detractors. Members of the industry often have negative things to say about the licensing procedure.
The DFS has fined many cryptocurrency firms nine figures over the last two years and is actively consulting with international politicians to improve its regulatory structure.
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