The New York Department of Finance (NYDFS) requires crypto-currency companies to prepare detailed coronavirus preparedness plans. This is to signal the seriousness of COVID-19.
Crypto companies face new challenges
New York’s crypto-companies must prepare contingency plans with detailed information, according to a letter sent on March 10. The preparations must include strategies to protect employees and increase cyber-risk mitigation. Communication plans are also needed in the event of a disaster. In addition, procedures are needed to ensure the continued functioning of critical operations. This should ensure that important operations can continue to run.
The NY regulatory authority was particularly concerned about the possibility that hackers could attempt to exploit the virus outbreak. The NYDFS “underlined” the risk of hacks and asked companies to consider implementing more robust security measures. This could help uncover “fraudulent trading or retreating behaviour”. The agency also pointed out the possibility that remote workers could jeopardize assets held in custody if they moved funds from “cold” storage to “hot” wallets. Companies are required to submit their plans within the next 30 days, but preferably “as soon as possible”. An NYDFS spokesperson did not immediately respond to questions about whether the request applies to all BitLicense holders. BitLicense is a business license for digital currency activities issued by the New York State Treasury Department.
New York is almost a ghost town
The situation today: fewer and fewer people commute. People keep their distance and adhere to the “social distancing” recommended by the government. The streets are empty. The yellow taxis are parked at the side of the road, but no customers are in sight.
The inquiry offers a striking insight into New York’s current reaction to a crisis that is continuing to escalate. When the NYDFS issued the memo the day before last Tuesday, the state of New York was already in a state of emergency triggered by a corona virus for days. Companies in the city where most of New York’s virtual currency firms are located were still considering what to do in response to the outbreak. Until last Thursday, however, this dynamic seemed to change. Governor Andrew Cuomo declared a moratorium on mass meetings. Mayor Bill de Blasio of New York City declared a city-wide emergency and warned the public in press conferences that the corona virus could trigger “a six-month crisis”.
