New York regulator asks crypto firms to submit their coronavirus preparedness plans

Quick Take

  • The New York State Department of Financial Services (NYDFS) has asked all registered crypto firms to submit their coronavirus preparedness plans
  • There are currently 18 firms regulated by the NYDFS, according to The Block research
  • These include Coinbase, Ripple, Circle, Tagomi, BitPay and Square, among others.
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The New York State Department of Financial Services (NYDFS) has issued a letter to all registered crypto firms, asking them to submit their coronavirus preparedness plans.

Coronavirus or COVID-19 has already had "adverse" economic effects and it is "critical that each regulated entity" sets up plans to address risks arising from an outbreak, according to the letter, issued Tuesday.

Preparedness plans must include preventative measures, employee protection strategies, assessment of all facilities and systems, as well as "an assessment of potential increased risk of cyber-attacks and fraud due to an outbreak," among other details.

Plans are to be submitted in the next 30 days, but preferably "as soon as possible," per the letter.

There are currently 18 crypto firms regulated by the NYDFS, i.e., those who have been issued BitLicenses, according to The Block's research. These include Coinbase, Ripple, Circle, Tagomi, BitPay and Square, among others.

Interestingly, Coinbase shared its coronavirus preparation plans last month. The plan includes four tiers - from tier 0 to tier 3. In the last tier, all employees will be required to work from home.

As of now, all of the exchange's offices are in tier 0, except for Japan, which is tier 1.  Coinbase has also restricted travel to China, Hong Kong, Japan, Italy, and South Korea. 

U.S. officials, including New York's, are taking stringent measures in order to fight the spread of the coronavirus. Just yesterday, New York mayor Bill de Blasio declared a state of emergency and predicted that New York City would have 1,000 confirmed cases by next week. The city currently counts 95 confirmed cases, according to de Blasio.

New York Governor Andrew Cuomo also yesterday placed an indefinite ban on mass gatherings of more than 500 people.


© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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