NYDFS publishes a list for approved virtual currencies for NY businesses

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The New York Department of Financial Services NYDFS publishes updated list for approved virtual currencies for NY businesses may take to begin using or listing cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) and many others.
The NYDFS is the department of the New York state government that regulates financial services and products, including those subject to the New York insurance, banking and financial services laws.
The NYDFS said that companies in NY may start using a cryptocurrency after approval of a specific application, which may be submitted to the department for “a material change of business.” There’s also the self-certification route, where a particular coin listing policy is approved by the DFS. Alternatively, NY state businesses may use any of the virtual currencies on the DFS’ green list.
The NYDFS states:“Any entity licensed by DFS to conduct virtual currency business activity in New York may use coins on the Greenlist for their approved purpose(s). Note that if a licensed entity decides to use a coin on the Greenlist, it must inform DFS prior to beginning its use.”
Digital currencies approved for listing, by the DFS, include Bitcoin (BTC), Binance Coin (BNB), Bitcoin Cash (BCH), Ethereum (ETH), Gemini Dollar (GUSD), Litecoin (LTC), Pax Gold (PAXG), and Paxos Standard (PAX).
Digital currencies approved for custody, by the DFS, include Bitcoin (BTC), Binance Coin (BNB), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Gemini Dollar (GUSD), Litecoin (LTC), Pax Gold (PAXG), Ripple (XRP), and Paxos Standard (PAX).
It is interesting that XRP is not in the list of currencies approved for custody. This may be due to the fact that XRP is facing multiple lawsuits (most of which are now consolidated into one or less). Analysts have argued that XRP can be a security for multiple reasons, like its strong association with Fintech Ripple, which has also been sued by XRP investors.
The digital asset’s investors have alleged that Ripple sold large amounts of XRP to cover operational costs, which has caused a significant decline in the token’s price. It’s unclear how regulators will respond to XRP transactions in the future.
Ethereum Classic (ETC) has also been accepted custody, but not listing. Recently, Ethereum Classic expereienced serious attacks which led to the attacker being able to double-spend (using the same set of funds or coins for the same transaction) $1.68 million in ETC.
Ethereum Classic has smaller network in comparison to Ethereum (ETH). ETC has maintained the original Ethereum chain, after the multi-million dollar smart contract hack of Ethereum (the DAO attack).
While ETC proponents want to support the immutability principle of blockchains, by not agreeing to roll back the transactions following the DAO hack, Ethereum classic does not have as much network as Ethereum (ETH). Historically, smaller cryptocurrency platforms can be more susceptible to network attacks.
While the NYDFS has not clearly specified the reasons why Ethereum Classic or Ripple have not been approved for listing, it’s possible that companies may be able to submit an application requesting that they be allowed to list these currencies.
 

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