NYDFS to Introduce Digital Financial Reporting for Cryptocurrency Companies

The New York State Department of Financial Services (NYDFS) will introduce a digital financial reporting system for cryptocurrency companies as part of the techsprint technology initiative.

NYDFS Superintendent Linda Lacewell said in a press release about a new technology initiative for the introduction of digital reporting techprint, which will allow the regulator to get “instant access” to the data of firms under its control.

“The future of financial supervision is digital, and it’s time to implement it,” Laswell said.

NYDFS is “committed to automating reporting” on financial data through the department’s controlled divisions, she said. Operators of cryptocurrency services will be the first to switch to digital financial reporting, as they have “advanced digital capabilities”.

NYDFS notes data quality issues that arise due to the use of outdated reporting formats. The regulator will work with the Association of State Banking Supervisors and the Alliance for Innovative Regulation to launch techprint.

Soon, financial technology professionals, regulators, and experts working on compliance solutions will come together to propose possible solutions for launching the initiative. These solutions can range from process improvements to a working prototype of a reporting mechanism.

As a result, a set of common standards will be developed, which will be presented in an open source technical environment and subsequently adopted by the NYDFS and possibly other regulatory bodies. Meetings are scheduled for the fourth fiscal quarter of this year, and techprint is scheduled to launch in early 2021.

Recall that in August, the New York State Department of Financial Services approved
eight crypto assets for listing and trading on exchanges and ten for storage in licensed organizations.