NYDFS issues guidance for banks interested in virtual currency

The New York State Department of Financial Services (NYDFS) issued guidance Thursday outlining guidelines banks and financial institutions must follow to engage in virtual currency activities in the state.

The guidance comes more than seven years since the department adopted virtual currency licensing rules (23 NYCRR Part 200). Banks have been required since then to seek permission from the NYDFS before launching into virtual currency activities.

The guidance serves as a reminder banking institutions will be expected to engage in an extensive application process.