At a time when bitcoin is making inroads into the mainstream trading world through futures trading, regulators including New York Department of Financial Services are keeping close watch on the cryptocurrency and working towards keeping consumers secure.
According to Maria Vullo, the superintendent of New York Department of Financial Services, they are on top of bitcoin. Vullo said they are scrutinizing companies offering bitcoin services and ensuring that they are doing things they need to do. As of this writing six bitcoin related companies licensed by the department.
Vullo said while the regulator does provide licenses for bitcoin related services, the application process for a state bitcoin license is lengthy and vigorous. They require information about the owner(s) of the company as well as whether the people involved with the formation of the company have enough capital and liquidity while also ensuring that they have robust cyber security practices was well as policies and procedures in place to counter money laundering. She said the procedure is similar to that of regulating banks and insurance companies.
Vullo said the agency will be in a position to protect consumers should the federal government retreat from supporting the Consumer Financial Protection Board (CFPB), in light of the Trump Administration’s criticism of the CFPB.
“We will do what we can in New York to protect New Yorkers,” Vullo said in a recent interview. Since the government created the CFPB, New York State has had a “terrific” relationship with it, Vullo said.
She added that under the Dodd Frank Act, the state has the ability to bring cases against parties.