After being accused of mixing assets of FTX, a bankrupt cryptocurrency trading center, and Alameda Research, a related financial investment company, resulting in huge losses to customers, the top financial industry regulator in New York State will release new implementation opinions on Monday, requiring it to separate customers' cryptocurrency property from its own cryptocurrency property.

New Encryption Manual

This inquiry is the latest in a series of encryption related orders issued by the New York State Financial Services Center (NYDFS) in the past year. Back in 2022, the world experienced a sales market crash. In 2022, the value of cryptotokens decreased by about 130 million dollars. This crash led to the collapse of cryptocurrency enterprises such as FTX and Celsius Network. The latest one is Genesis Global Capital. The borrower of the company applied for protection according to the U.S. bankruptcy law on Thursday.

In addition, the New York State Financial Industry Service Center (NYDFS) indicated that enterprises regulated by the state must tell customers how they account for their digital currency. NYDFS is one of the few state institutions with such regulatory structure. At that very moment, as well as the Federal Government regulators including the United States Commodity Futures Trading Federation (CFTC), expressed concern about the lack of consumer protection in the field of cryptocurrency. Because the United States Congress did not follow the laws that gave it additional territorial jurisdiction, the CFTC and other federal government agencies can adopt actions subject to multiple restrictions.

Supervise the login password at the intersection

The State of New York requires enterprises to conduct financial audits to confirm whether they meet KYC's current policies, compliance management guarantee system and capital standards. In most of the states, it is not common to check the cryptocurrency business process.

Adrianne Harris, director of DFS in New York City, was quoted as saying:

This is also timely, but to be honest, long before the FTX, this is our current policy route map

Sanders, a former consultant of the US Treasury Department, was appointed as the head last year. She spent most of her first year in office raising the institution's attention to cryptocurrency. According to her detailed introduction, the DFS digital currency unit in New York City has nearly 50 employees and is now seeking to expand.