Assemblyman Clyde Vanel announced the formation of a cryptocurrency-specific task force for New York on Wednesday. Through a Facebook post, Vanel said that New York State became the first state in the nation to create a cryptocurrency task force to study how to properly regulate, define and use cryptocurrency. Last week, NYS Governor Andrew Cuomo, signed into law THE DIGITAL CURRENCY STUDY BILL.
Explaining the function of cryptocurrencies such as bitcoin, ethereum, litecoin, among others, he said, “The members of the task force, appointed by the Governor, Senate and Assembly, are to submit reports by December 15, 2020. The members will include stakeholders such as, technologists, consumers, institutional and small investors, large and small blockchain enterprises and academics. The group shall report on digital currency, cryptocurrency and blockchain technology.”
Vanel noted that this move was introduced after there were numerous reports of Bitcoin exchanges getting hacked and people losing their holdings. In response to a major exchange compromise, in 2015, under Governor Cuomo, New York State’s Department of Financial Services promulgated the BitLicense to protect New Yorkers on cryptocurrency exchanges. New York was first to act and to this day, the BitLicense is modeled by many states and countries.
As earlier reported by Crypto-News India, in November, New York State Department of Financial Services (NYDFS) has announced that it has approved cryptocurrency-related company New York Digital Investment Group Execution LLC, a subsidiary of New York Digital Investment Group (NYDIG)’s application to operate the cryptocurrency-related business and money transmission and was hence granted the BitLicense.
After the bill was passed, the NYS Assemblyman Chair of Subcommittee on Internet and New Technologies said, “New York leads the country in finance. We will also lead in proper fintech regulation. The task force of experts will help us strike the balance between having a robust blockchain industry and cryptocurrency economic environment while at the same time protecting New York investors and consumers.”
Seconding his opinion, Julie Samuels, Executive Director of Tech:NYC said, “Cryptocurrencies and blockchain technology will, without a doubt, greatly impact finance and many other industries across the globe for years to come. New York’s cryptocurrency task force – the first of its kind in the nation – shows how our state is leading the way in studying and understanding these technologies to ensure they can thrive in a responsible and effective way, further solidifying New York’s position as a global hub for smart innovation.”