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The New York State Department of Financial Services on Wednesday released new rules for licensed cryptocurrency firms that issue stablecoins, calling for reserve requirements and monthly independent audits.
The guidance affects current holders of the BitLicense, the business license for virtual currency firms operating in New York state, or limited purpose trust charterholders that issue stablecoins backed by a fiat currency.
The agency said it expects stablecoins to be fully backed by a reserve of assets and redeemable by investors. It also laid out requirements for those reserves, including the various assets the reserves should comprise and a specification that they be “segregated from the proprietary assets of the issuing entity.” Issuers should also submit to monthly audits by an independent certified public accountant.
Regulators have focused on stablecoins in recent months due to the lack of transparency around trading these virtual assets and the reserves backing...
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