"There are also many tokens issued by DFS, it's like there's no tomorrow."
New York's Department of Financial Services (DFS) has implemented stricter measures under the authority of Superintendent Adrienne Harris after improving its virtual currency framework and approval process including strengthening consumer protections.
Following the restructuring measures, more than two dozen digital assets have been removed from the "greenlist" of tokens approved by DFS, among which are Ripple (XRP), Dogecoin (DOGE) and Litecoin (LTC) and now it only includes eight tokens.
In addition to creating a token greenlist for cryptocurrency oversight, DFS has given approval to firms licensed under it to offer custody services and token listings through its own certification system.
However, the licensee must have a token delisting policy so that users will not be greatly affected when a digital asset is removed.
DFS has taken a tough stance during the crypto market's bearish momentum, where it not only imposed a $100 million settlement on Coinbase following the failure of its compliance program but also ordered Paxos to stop issuing Binance USD (BUSD).
The string of updated greenlists has fueled concern for crypto exchanges as DFS follows up on navigating the regulatory uncertainty of deciding which tokens to include.
There is no doubt that the update by DFS has raised the standards for listing or delisting a token, but it can balance innovation and regulatory oversight in the crypto market to ensure consumer protection.
