New York Regulator Asks Crypto Institutions to Submit Coronavirus Plans

The New York State Department of Financial Services (NYDFS) has sent a letter to all regulated crypto institutions, requiring them to provide their coronavirus preparedness plans.

NYDFS asked crypto firms to provide preventative measures, employee protection plans, assessment of facilities, systems and policies, as well as "an assessment of potential increased risk of cyber-attacks and fraud due to an outbreak.”

Crypto companies need to submit the plans as soon as possible, but no longer than 30 days, said NYDFS in the letter.

At the moment, there are 18 NYDFS-regulated crypto institutions which have BitLicenses - Coinbase, Ripple, Circle, Tagomi, BitPay, and Square etc.

The New York regulator said that all institutions must prepare a plan for all feasible coronavirus operational risks. The plan must touch upon at least nine key areas of focus, and another 3-point plan which must address financial risks.

Forward planning should contain “preventative measures tailored to the institution’s specific profile and operations.”

Also, cryptocurrency companies must develop strategies that address the impact of the virus in stages, to make sure that their reactions can be adequately scaled at each stage.

Crypto exchange Coinbase issued its coronavirus preparation plans in February. The exchange developed a 4-tier strategy, from 0 to 3. In tier 3, all employees would need to work from home.

At this moment, all of Coinbase’s workplaces are in tier 0, apart from Japan, which is in tier 1. The company has also suspended travel to China, Hong Kong, Japan, Italy, and South Korea.

Officials in New York, as well as in the whole of the U.S., are taking action to prevent the coronavirus from spreading. Yesterday, the mayor of New York Bill de Blasio declared a state of emergency, and according to his estimations, NYC will have 1,000 confirmed cases in a week.

There are 95 confirmed cases in New York City at the moment, said the mayor.