Consistent with New York's status as a financial services
and technology hub, the New York State Department of Financial
Services (the "NY DFS") announced on July 23, 2019 a new
Research and Innovation Division (the "Division")
focusing on fintech innovation and consumer protection. The
Division will also assume responsibility for licensing and
supervising entities engaged in virtual currency business activity
under the NY DFS's BitLicense Regulation.
As the NY DFS explained, the Division is intended to make the NY
DFS "the regulator of the future" by reviewing the use of
technology in financial services, safeguarding consumer data
rights, and fostering fintech innovation. The Division follows
recently confirmed NY DFS Superintendent Linda Lacewell's
prioritization of fintech and consumer protection, and is the
latest in a long line of NY DFS actions to heighten regulation of
fintech market participants.
