As a measure for the state to reclaim operational expense charges and "best assist" the industry, the fees will bring virtual currency enterprises up to level with those paid by banking and insurance organisations.

New York has ordered Bit license crypto firms to pay annual assessment fees
New York has ordered Bit license crypto firms to pay annual assessment fees

The cost of running a crypto business in New York is about to climb, as the state government prepares to force BitLicense holders to pay assessment fees in order to ensure they're following rules.

According to a statement from the DFS, the rule was included in Additional York State's FY2023 budget, which Governor Kathy Hochul signed into law on April 9th, providing the state's "New ability to collect supervision fees from licenced virtual currency firms," according to the Department of Financial Services (DFS).

The costs would put virtual currency businesses in line with those now paid by institutions like banks and insurance companies, according to DFS Superintendent Adrienne Harris.

New York has ordered Bitlicense crypto firms to pay annual assessment fees.

With the establishment of the now-famous "BitLicense," New York became the first state in the United States to require crypto firms to be licenced. The application price for such a permission is now $5,000, and it is subject to unclear capital limits set by the New York DFS.

The amount of the DFS's annual assessment fee is still unknown, although similar costs for other regulated financial institutions can go into the tens of thousands of dollars per year.

The fees, according to the DFS, will "empower the Department to build employees with the capacity and knowledge to best govern and support this fast growing industry" by helping to fund the operating expenses of regulating crypto enterprises.

Businesses that accept cryptocurrency as payment, develop crypto-related software such as self-custody wallets, or provide cryptocurrency trading advice are exempt from the BitLicense and its associated fees.

Self-regulatory organisations are expanding in tandem with new crypto regulations in the United States.

Recently, New York's crypto regulation and licencing have come under assault, with billionaire investor Bill Ackman giving his concerns in February about the state's failed regulations and how they may force him to leave.

Ackman urged Mayor Eric Adams and Governor Andrew Cuomo to address growing regulatory concerns, claiming that loosening limitations and removing regulatory barriers could turn New York into a "crypto centre of innovation."

Mayor Adams campaigned on a promise to make New York City the "crown jewel" of the cryptocurrency business, even accepting his first three paychecks in Bitcoin (BTC). According to a November report from Cointelegraph, it is up to the New York DFS and state government to adopt policies that will entice the business.

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