According to the NYDFS, new technologies such as Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. allow these companies in the crypto sector to comply with the guidelines established in the laws in force, and to ensure that transactions with cryptocurrencies are not used for illicit purposes.
El Department of New York State Financial Services (NYDFS) invited all crypto ecosystem companies working regionally to implement analytics services and tools. Blockchain.
The announcement of the NYDFS came to place in a new statement published on its official website, which urges entities under its jurisdiction to implement this as standard, highlighting precisely the benefits associated with the use of these technologies to ensure values such as transparency and due compliance with existing regulations.
In this regard, the communiqué reads:
“The purpose of this guidance from the New York State Department of Financial Services…is to emphasize to all virtual currency currency is a medium of exchange that defines value. business entities licensed under 23 NYCRR Part 200 or…as a limited purpose trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. company under the New York Banking Law, the importance of Blockchain analytics to effective policies, processes and procedures, including, for example, those related to customer due diligence, transaction monitoring and sanction assessment.”
Adapting to the possibilities of new technologies
While the agency has not had any conflict with the use of Blockchain, It is particularly interesting that it highlights the importance of implementing tools based on this technology, especially in light of the possibilities that cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. transactions bring with them to move value without restrictions seen in the traditional finance sector.
In this regard, the NYDFS clarify that “Financial activities involving the use of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies could involve…different sources, destinations and types of fund flows than those found in fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. currency contexts” The use of pseudonyms is permitted and trusted third parties are dispensed with. “regulated”. Therefore, in view of the Banking Law and the New York Financial Services Law, as well as the Federal Bank Secrecy Act/Anti-Money Laundering Act (BSA/AML) and the guidelines of the Office of Foreign Assets Control (OFAC), it is important to ensure compliance programs that take appropriate precautions.
On the proposal of analysis tools and services Blockchain, la NYDFS he clarifies:
“While such features present compliance challenges, it also brings new possibilities for control measures that leverage money that a trader borrows from a brokerage, enabling them to gain far greater exposure to a position than what their capital allows. these new technologies. For example, digital currencies, by their nature, generally allow for provenance tracking (i.e., review of previous transfers or “hops” along the Blockchain, or ‘in the network’). Put another way, the immutability of Blockchain generally allows for a historical view of a transmission…between addresses, providing the opportunity for greater visibility into transaction history than is typically found with traditional fiat fund transfers.”
The possibilities of Blockchain
Continuing with this idea, Superintendent Adrienne Harris commented:
“Blockchain analytics tools provide firms with an efficient, data-driven way to conduct customer due diligence, transaction monitoring, and sanction detection, among other things, which are critical elements of our regulation for virtual currencies. We expect regulated regulation is when something is controlled by a specific set of rules. entities to use best practices to maintain the safety and soundness of the virtual currency marketplace to adequately protect consumers.”
The request is very much in line with what enthusiasts and analysts say, who indicate that Blockchain brings with it many benefits, especially highlighting aspects such as transparency and traceability of operations through a public network.
- New York Assembly passes bill seeking 2-year moratorium on cryptocurrency mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created.
- Man charged in New York with operating Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. ATMs in laundromats to lure criminals
- New York Senate Authorizes Financial Services Department to Evaluate Crypto Companies
Version by Angel Di Matteo / DiarioBitcoin
Imagen de Unsplash