Bill > A08813

This bill establishes a comprehensive regulatory framework for virtual currency businesses operating in New York State. The legislation requires any business engaging in virtual currency activities to obtain a license from the New York State Department of Financial Services, with detailed requirements for application, compliance, consumer protection, and ongoing operations. Key provisions include mandatory anti-money laundering programs, cyber security standards, business continuity planning, and extensive consumer protection disclosures. Businesses must provide clear information about the risks of virtual currencies, such as price volatility, lack of government backing, and potential for fraud. The bill mandates that licensed entities maintain robust internal controls, protect customer assets, maintain detailed records, and submit to regular examinations by state regulators. Licensees must also implement comprehensive policies for identifying and mitigating risks, protecting customer data, and ensuring the security of their electronic systems. The law aims to create a structured, transparent environment for virtual currency businesses while safeguarding consumers from potential financial risks and fraudulent activities. Businesses already operating in New York when the law takes effect will have 45 days to apply for a license, and failure to do so will be considered unlicensed activity.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A8813