Summary of New York Department of Financial Services Virtual Currency Guidance for Banking Organizations

On December 20, 2022, Cravath distributed a memo for its clients and other stakeholders entitled “Summary of New York Department of Financial Services Virtual Currency Guidance for Banking Organizations,” which examines an industry letter issued by the NYDFS providing guidance applicable to all New York banking organizations and NYDFS-licensed branches and agencies of foreign banking organizations (collectively, “Covered Institutions”) which are seeking to engage in “virtual currency-related activity.” Effective immediately upon its issuance on December 15, the guidance defines “virtual currency-related activities,” reminds Covered Institutions of the need to seek approval before commencing any new activity in the space and includes requirements for the information included in written submissions.

Please click here to read the memo.