New York Codes, Rules and Regulations › Title 23 - FINANCIAL SERVICES › Chapter I - Regulations of the Superintendent of Financial Services › Part 200 - VIRTUAL CURRENCIES › Section 200.6 - Action by superintendent

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
				Generally. Upon the filing of an application for licensing under this Part,
				payment of the required fee, and demonstration by the applicant of its ability
				to comply with the provisions of this Part upon licensing, the superintendent
				shall investigate the financial condition and responsibility, financial and
				business experience, and character and general fitness of the applicant. If the
				superintendent finds these qualities are such as to warrant the belief that the
				applicant's business will be conducted honestly, fairly, equitably, carefully,
				and efficiently within the purposes and intent of this Part, and in a manner
				commanding the confidence and trust of the community, the superintendent shall
				advise the applicant in writing of his or her approval of the application, and
				shall issue to the applicant a license to conduct Virtual Currency Business
				Activity, subject to the provisions of this Part and such other conditions as
				the superintendent shall deem appropriate; or the superintendent may deny the
				application.
(b) Approval or denial
				of application. The superintendent shall approve or deny every application for
				a license hereunder within 90 days from the filing of an application deemed by
				the superintendent to be complete. Such period of 90 days may be extended at
				the discretion of the superintendent for such additional reasonable period of
				time as may be required to enable compliance with this Part. A license issued
				pursuant to this Part shall remain in full force and effect until it is
				surrendered by the Licensee, is revoked or suspended, or expires as provided in
				this Part.
(c) Suspension or
				revocation of license. The superintendent may suspend or revoke a license
				issued under this Part on any ground on which the superintendent might refuse
				to issue an original license, for a violation of any provision of this Part,
				for good cause shown, or for failure of the Licensee to pay a judgment,
				recovered in any court, within or without this State, by a claimant or creditor
				in an action arising out of, or relating to, the Licensee's Virtual Currency
				Business Activity, within thirty days after the judgment becomes final or
				within thirty days after expiration or termination of a stay of execution
				thereon; provided, however, that if execution on the judgment is stayed, by
				court order or operation of law or otherwise, then proceedings to suspend or
				revoke the license (for failure of the Licensee to pay such judgment) may not
				be commenced by the superintendent during the time of such stay, and for thirty
				days thereafter. "Good cause" shall exist when a Licensee has defaulted or is
				likely to default in performing its obligations or financial engagements or
				engages in unlawful, dishonest, wrongful, or inequitable conduct or practices
				that may cause harm to the public.
(d) Hearing. No license issued under this
				Part shall be revoked or suspended except after a hearing thereon. The
				superintendent shall give a Licensee no less than ten days' written notice of
				the time and place of such hearing by registered or certified mail addressed to
				the principal place of business of such Licensee. Any order of the
				superintendent suspending or revoking such license shall state the grounds upon
				which it is based and be sent by registered or certified mail to the Licensee
				at its principal place of business as shown in the records of the
				Department.
(e) Preliminary
				injunction. The superintendent may, when deemed by the superintendent to be in
				the public interest, seek a preliminary injunction to restrain a Licensee from
				continuing to perform acts that violate any provision of this Part, the
				Financial Services Law, Banking Law, or Insurance Law.
(f) Preservation of powers. Nothing in this
				Part shall be construed as limiting any power granted to the superintendent
				under any other provision of the Financial Services Law, Banking Law, or
				Insurance Law, including any power to investigate possible violations of law,
				rule, or regulation or to impose penalties or take any other action against any
				Person for violation of such laws, rules, or regulations.