23 CRR-NY 200.8NY-CRR
23 CRR-NY 200.8
23 CRR-NY 200.8
200.8 Capital requirements.
(a) Each licensee shall maintain at all times such capital in an amount and form as the superintendent determines is sufficient to ensure the financial integrity of the licensee and its ongoing operations based on an assessment of the specific risks applicable to each licensee. In determining the minimum amount of capital that must be maintained by a licensee, the superintendent may consider a variety of factors, including but not limited to:
(1) the composition of the licensee’s total assets, including the position, size, liquidity, risk exposure, and price volatility of each type of asset;
(2) the composition of the licensee’s total liabilities, including the size and repayment timing of each type of liability;
(3) the actual and expected volume of the licensee’s virtual currency business activity;
(4) whether the licensee is already licensed or regulated by the superintendent under the Financial Services Law, Banking Law, or Insurance Law, or otherwise subject to such laws as a provider of a financial product or service, and whether the licensee is in good standing in such capacity;
(5) the amount of leverage employed by the licensee;
(6) the liquidity position of the licensee;
(7) the financial protection that the licensee provides for its customers through its trust account or bond;
(8) the types of entities to be serviced by the licensee; and
(9) the types of products or services to be offered by the licensee.
(b) Each licensee shall hold capital required to be maintained in accordance with this section in the form of cash, virtual currency, or high-quality, highly liquid, investment-grade assets, in such proportions as are acceptable to the superintendent.
23 CRR-NY 200.8
Current through June 15, 2022
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: The "Current through" date indicated immediately above is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Administrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of NYS Rules.