New York forms cryptocurrency task force

New York State Governor Andrew Cuomo signed a bill last month that would now see the state forming a cryptocurrency task force.

According to the bill, the task force will “provide the governor and the legislature with information on the effects of the widespread use of cryptocurrencies and other forms of digital currencies and their ancillary systems in the state.”

In a Facebook post, the bill’s sponsor, Assemblyman Clyde Vanel, said that the task force will comprise of technologists, consumers, institutional and small investors, as well as representatives from blockchain enterprises and academics.

“Recently, 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,” Vanel wrote.

The task force is required to submit a report by December 15, 2020. The report should include a review of the crypto industry in the state; the number of digital currencies currently being traded and their approximate percentage of market share; the number of exchanges operating in New York and their average monthly trade volume; the use of digital currencies' impact on state and local tax receipts; energy consumption for coin mining operations and more.

New York was among the first to introduce regulation for cryptocurrency businesses in the United States. The New York Department of Financial Services (NYDFS) published the final BitLicense rules in June 2015 for virtual currency business activity in the state. So far, the NYDFS has granted 14 licenses.

“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,” Vanel said.