Current through Register Vol. 46, No. 52, December 24, 2024
(a) Application for
a license required under this Part shall be in writing, under oath, and in a
form prescribed by the superintendent, and shall contain the following:
(1) the exact name of the applicant,
including any doing business as name, the form of organization, the date of
organization, and the jurisdiction where organized or incorporated;
(2) a list of all of the applicant's
Affiliates and an organization chart illustrating the relationship among the
applicant and such Affiliates;
(3)
a list of, and detailed biographical information for, each individual applicant
and each director, Principal Officer, Principal Stockholder, and Principal
Beneficiary of the applicant, as applicable, including such individual's name,
physical and mailing addresses, and information and documentation regarding
such individual's personal history, experience, and qualification, which shall
be accompanied by a form of authority, executed by such individual, to release
information to the Department;
(4)
a background report prepared by an independent investigatory agency acceptable
to the superintendent for each individual applicant, and each Principal
Officer, Principal Stockholder, and Principal Beneficiary of the applicant, as
applicable;
(5) for each individual
applicant; for each Principal Officer, Principal Stockholder, and Principal
Beneficiary of the applicant, as applicable; and for all individuals to be
employed by the applicant who have access to any customer funds, whether
denominated in Fiat Currency or Virtual Currency:
(i) a set of completed fingerprints, or a
receipt indicating the vendor (which vendor must be acceptable to the
superintendent) at which, and the date when, the fingerprints were taken, for
submission to the State Division of Criminal Justice Services and the Federal
Bureau of Investigation;
(ii) if
applicable, such processing fees as prescribed by the superintendent; and
(iii) two portrait-style
photographs of the individuals measuring not more than two inches by two
inches;
(6) an
organization chart of the applicant and its management structure, including its
Principal Officers or senior management, indicating lines of authority and the
allocation of duties among its Principal Officers or senior
management;
(7) a current financial
statement for the applicant and each Principal Officer, Principal Stockholder,
and Principal Beneficiary of the applicant, as applicable, and a projected
balance sheet and income statement for the following year of the applicant's
operation;
(8) a description of the
proposed, current, and historical business of the applicant, including detail
on the products and services provided and to be provided, all associated
website addresses, the jurisdictions in which the applicant is engaged in
business, the principal place of business, the primary market of operation, the
projected customer base, any specific marketing targets, and the physical
address of any operation in New York;
(9) details of all banking
arrangements;
(10) all written
policies and procedures required by, or related to, the requirements of this
Part;
(11) an affidavit describing
any pending or threatened administrative, civil, or criminal action,
litigation, or proceeding before any governmental agency, court, or arbitration
tribunal against the applicant or any of its directors, Principal Officers,
Principal Stockholders, and Principal Beneficiaries, as applicable, including
the names of the parties, the nature of the proceeding, and the current status
of the proceeding;
(12)
verification from the New York State Department of Taxation and Finance that
the applicant is compliant with all New York State tax obligations in a form
acceptable to the superintendent;
(13) if applicable, a copy of any insurance
policies maintained for the benefit of the applicant, its directors or
officers, or its customers;
(14) an
explanation of the methodology used to calculate the value of Virtual Currency
in Fiat Currency; and
(15) such
other additional information as the superintendent may require.
(b) As part of such application,
the applicant shall demonstrate that it will be compliant with all of the
requirements of this Part upon licensing.
(c) Notwithstanding Subsection (b) of this
Section, the superintendent may in his or her sole discretion and consistent
with the purposes and intent of the Financial Services Law and this Part
approve an application by granting a conditional license.
(1) A conditional license may be issued to an
applicant that does not satisfy all of the regulatory requirements upon
licensing.
(2) A Licensee that
holds a conditional license may be subject to heightened review, whether in
regard to the scope and frequency of examination or otherwise.
(3) Unless the superintendent removes the
conditional status of or renews a conditional license, said license shall
expire two years after its date of issuance.
i) The superintendent may in his or her sole
discretion and consistent with the purposes and intent of the Financial
Services Law and this Part:
(A) renew a
conditional license for an additional length of time; or
(B) remove the conditional status from a
conditional license.
(4) A conditional license may be suspended or
revoked pursuant to Section
200.6 of this Part.
(5) A conditional license may impose any
reasonable condition or conditions, as determined by the superintendent in his
or her sole discretion.
(6) The
superintendent may remove any condition or conditions from a conditional
license that has been issued.
(7)
In determining whether to issue a conditional license, renew or remove the
conditional status of a conditional license, or impose or remove any specific
conditions on a conditional license, the superintendent may consider any
relevant factor or factors. Relevant factors may include but are not limited
to:
i) the nature and scope of the
applicant's or Licensee's business;
ii) the anticipated volume of business to be
transacted by the applicant or Licensee;
iii) the nature and scope of the risks that
the applicant's or Licensee's business presents to consumers, Virtual Currency
markets, financial markets, and the general public;
iv) the measures which the applicant or
Licensee has taken to limit or mitigate the risks its business
presents;
v) whether the applicant
or Licensee is registered with FinCEN;
vi) whether the applicant or Licensee is
licensed, registered, or otherwise authorized by any governmental or
self-regulatory authority to engage in financial services or other business
activities;
vii) the applicant's or
Licensee's financial services or other business experience; and
viii) the Licensee's history as a holder of a
conditional license issued by the superintendent.
(d) The superintendent may permit
that any application for a license under this Part, or any other submission
required by this Part, be made or executed by electronic
means.