Companies Should Separate Clients' Crypto Assets From Their Own: NYDFS

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The regulator claimed the guidance is intended to offer 'greater clarity regarding standards and practices.'

Companies Should Separate Clients’ Crypto Assets From Their Own: NYDFSThe regulator claimed the guidance is intended to offer “greater clarity regarding standards and practices.”

“As stewards of others’ assets, virtual currency entities that act as custodians play an important role in the financial system and, therefore, a comprehensive and safe regulatory framework is vital to protecting customers and preserving trust.” They should also release records and maintain a “clear internal audit trail” to identify people about any transactions involving their ownings.The regulator said custodians should not use users’ crypto assets to settle separate financial services, such as guaranteeing an obligation or extending credit.

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