NYDFS Releases Guidance on Importance of Segregation and Separate Accounting for Customer Funds in Crypto Industry

On Monday, the New York Department of Financial Services (NYDFS) published guidance on custodial structures to help protect customers’ money if a crypto firm goes bankrupt. New York’s top financial regulator stressed that businesses should not commingle customer funds and that customer funds should be segregated with separate accounting. FTX Collapse Prompts NYDFS to Issue Guidance on Virtual Currency Custodian Regulations Following the recent collapse of FTX and allegations directed at its co-founder, Sam Bankman-Fried, and top deputies, the New York Department of Financial Services (NYDFS) released guidance detailing that customer assets held by a virtual currency business must be