The State of New York has actively pursued cryptocurrency regulation, especially since exchanges operating in the region need to register and be licensed by the city’s financial regulator. Despite this aspect, the New York State Assembly has recently proposed the idea of creating a digital currency task force, meant to examine the crypto and blockchain markets operating locally.
According to a summary of the meeting, if approval is received, the task force will consist of 9 persons, who will write out a report of their findings by December 2019.
The actual proposal showcases that policymakers are aware that cryptocurrencies are here to stay, therefore understanding the market is essential to regulating it without hindering innovation.
Based on this, it has been reported that the task force has been charged with answering 9 main questions, as follows:
-
How many coins are being traded, and what their marketing percentage is;
-
What the amount of energy required to mine digital currencies is;
-
How NYC plans to deal with, and address the future impact brought along by the cryptocurrency revolution;
-
How many crypto exchanges offer their services to NYC residents and what their monthly trading volume is;
-
How can the NYC government increase customer protection and further enhance the transparency of the market
-
What regulatory approaches did other states and countries have towards regulating the digital currency markets;
-
What impact to digital currencies have on the state and local tax receipts;
-
Is there any potential for price manipulation, and how transparent the market is;
-
Who are the biggest investors in the crypto market;
The New York state is one of the leading regions in trying to understand and monitor the crypto industry. The crypto task force proposal is therefore not the fact initiative of the state.
With this in mind, back in April 2018, the Attorney General’s Office attempted to learn more about crypto exchanges, and thus sent questionnaires to the 13 top exchanges operating in the region. The Winklevoss twins, who are the managers of the Gemini exchange, are happy with the initiatives, as they believe: “These technologies can’t flourish and grow without thoughtful regulation that connects them to finance (…) As long as jurisdictions strike the right balance, we think it’s going to be a huge boon and win for cryptocurrencies.”
Based on everything that has been outlined so far, what are your thoughts on NY’s approach towards understanding the crypto market? Let us know in the comment section below.