On December 1, 2022, the New York Department of Financial Services (NYDFS) issued a press release regarding a proposed regulation that details how licensed virtual currency businesses would be assessed for supervision and examination costs. This proposed regulation follows New York’s April 9, 2022 adoption of a provision to the state’s Fiscal Year 2023 budget that requires companies holding a Bit License to pay regulatory assessment fees to do business in New York.

According to the press release, the proposed regulation effectuates the aforementioned provision by giving NYDFS new authority to collect supervisory costs from licensed virtual currency businesses, similar to other licensed financial institutions in New York. Superintendent Adrienne Harris described that “the ability to collect supervisory costs will help [NYDFS] continue protecting consumers and ensuring the safety and soundness of this industry.”

Further, NYDFS published the proposed regulation for public comment on December 1, 2022. The proposed regulation is subject to a 10-day pre-proposal comment period that began December 1, followed by a 60-day comment period upon publication in the State Register.