New York Department of Financial Services (NYDFS) has adopted new regulations for the assessment of costs associated with crypto companies’ supervision.

The regulation will require companies to meet rigorous standards for capitalization, cybersecurity protection and anti-money-laundering protocols, NYDFS said in a statement Monday.

NYDFS Superintendent Adrienne Harri said: “As New York’s first prudential regulator for virtual currency, we have created a framework which sets the highest standards of safety, soundness and consumer protection, while encouraging responsible growth.” This regulation gives the Department additional tools and resources for regulating the virtual currency industry, now and in future as innovators develop new products and uses cases for digital assets.

Regulations apply only to companies that have a BitLicense issued by the state – a NYDFS license allowing them to do business in New York. Only 22 companies hold this license.

Around a year ago the New York State Senate announced that it would increase NYDFS’ efforts in order to supervise the cryptocurrency sector. This was done to try to align the oversight of cryptocurrencies to the way the regulator oversees traditional banks and financial services firms.

NYDFS proposed the rule for the first time in December.

Nikhilesh De.