On December 15, 2022, the New York Department of Financial Services (“NYDFS”) issued guidance clarifying that all New York banking organizations are required to obtain prior agency approval for virtual currency-related activity (“2022 Guidance”). The 2022 Guidance is similar to prior notice guidance issued by the federal banking regulators but establishes highly prescriptive information requirements for submissions. Additionally, it greatly expands prior NYDFS guidance regarding when prior approval is required for a banking activity.

The 2022 Guidance is immediately effective for all New York banking organizations, which includes banks and trust companies that are chartered under New York banking law, as well as US branches and agencies of non-US banking organizations that are licensed under New York banking law. In this Legal Update, we provide background on the authorized activities of New York banking organizations and describe the 2022 Guidance.

Read the complete Legal Update.