• The New York State Department of Financial Services won’t hesitate to take enforcement action against crypto firms that do not comply with their rules, Superintendent Adrienne Harri said on Tuesday at a Financial Times Conference.
  • Other regulators, advisors, and experts encourage a global and bespoke approach to crypto.

Superintendent Adrienne Harriman said that the New York State Department of Financial Services is not afraid of bringing enforcement actions against crypto firms who do not adhere to its rules. She made this statement at a Financial Times event held on Tuesday.

The regulator has taken actions against some of crypto’s biggest names. The Coinbase (COIN), exchange was fined $50 million in January for allowing users to open accounts without performing sufficient background checks. Trading platform (HOOD) received a $30 million fine for allegedly violating the anti-money laundering regulations.

Harris said, “We’ve spent a great deal of time on what I called when I was first elected, a ‘tone reset’, where we tell people that they are regulated and to set expectations. We also give them rules. If you do not follow these rules, we’ll take enforcement action.”

Binance, a crypto exchange, recently struck a deal with U.S. regulatory authorities in order to settle allegations that it had served U.S. clients without the proper approvals and permitted citizens to process transactions for customers from sanctioned areas.

“We have been discussing the illicit financial component of cryptocurrencies. “I think that will continue, and attention to that issue is going to be increased as a result of Binance.

Regulators around the world have been working on how to best oversee the crypto sector. The European Union, for example, has passed the markets in crypto assets regulation, a set of broad rules that apply to the digital asset market and can be applied across all 27 EU members. Some worry this legitimizes crypto.

“Well, crypto isn’t really illegitimate.” It’s just a piece of technology. It’s a way of keeping records. Peter Kerstens said that the European Commission’s adviser Peter Kerstens stated during the same panel, “Rather than a central entity, they use a shared ledger. So, there is nothing illegal about it.” “With that technology you can do a lot of illegal things, and we will try to regulate and moderate for that.”

Lisa Cameron from the U.K., who was also on this panel, called for global crypto standards to be implemented.

Cameron stated that “I believe there needs to be a certain level of interoperability and a baseline of standards, then other jurisdictions can add other aspects to that.”

International standard-setters like the Financial Stability Board, and the International Organization of Securities Commissions, have published global standards that countries can apply.

Sandali Handagama is the editor.