New York — Bitcoin and virtual-currency law

Bitcoin Research — Law, Regulation, Markets & Origins (2026)

Legislation

2026-10-09

Document text

Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.

New York — Bitcoin and virtual-currency law

  • Jurisdiction: State of New York (US)
  • Date checked: 2026-10-09 (all statuses below were checked on this date unless another date is given)
  • Main regulator: New York State Department of Financial Services (NYDFS). Acting Superintendent in 2026: Kaitlin Asrow (per NYDFS press releases of 2026-06-09 and 2026-10-01). [S7][S8]
  • Other actors: NY Attorney General (Martin Act and Executive Law § 63(12) fraud cases); Department of Taxation and Finance; Department of Environmental Conservation (mining permits).
  • Legislature: 2025–2026 two-year session; regular session ended June 2026. Bills not passed by both houses die at the end of 2026.
  • Saved primary sources: sources/states/ny/ (see sources/states/ny/INDEX.md)

At a glance

Topic New York position Key cite Status (checked 2026-10-09)
Virtual-currency licence BitLicense — a separate licence for "virtual currency business activity" 23 NYCRR Part 200 (adopted June 2015) In force [S1]
Alternative charter Limited purpose trust company under the NY Banking Law (fiduciary powers; can transmit without a separate money-transmitter licence) NY Banking Law; NYDFS page In force [S2]
Money transmitter law NY Banking Law Article 13-B (money transmitters) — separate from the BitLicense (article number from general knowledge; not re-verified) — —
MTMA / UMSA / URVCBA Not an MTMA state (CSBS, 2026-10-08); not a UMSA or URVCBA state (URVCBA unverified) [S16] —
Crypto ATMs / kiosks No kiosk statute yet. S 9891-B passed the Senate 59-2 on 2026-06-03; Assembly companion A 10899-C stuck in Rules S 9891-B / A 10899-C Pending; session over [S12][S13]
Tax Convertible virtual currency is intangible property; paying with it is a barter; no sales tax on the currency itself TSB-M-14(5)C, (7)I, (17)S, 2014-12-05 In force [S3]
Proof-of-work mining Two-year moratorium on new/renewed air permits for fossil-fuel plants that power PoW mining behind the meter ECL § 19-0331, Ch. 628 of 2022 (A 7389-C / S 6486-D) Signed 2022-11-22; ran two years from effective date; 2025 extension bill A 5353 stricken [S4][S11]
Stablecoins 2022 guidance on USD-backed stablecoins; proposed regulation announced 2026-06-09 to align with the federal GENIUS Act NYDFS industry letter 2022-06-08; press release 2026-06-09 Guidance in force; rule proposed [S5][S7]

1. Money-transmitter licensing of virtual currency (the BitLicense)

  • 23 NYCRR Part 200 "Virtual Currencies" (statutory authority: Financial Services Law §§ 102, 104, 201, 206, 301, 302, 309, 408). Sections 200.1–200.22 cover definitions, licence (200.3), application and fees, capital (200.8), custody and protection of customer assets (200.9), change of control, books and records, examinations, AML program (200.15), cybersecurity program (200.16), business continuity, advertising, consumer protection (200.19), complaints, and a transitional period. Full 2015 adoption text saved: sources/states/ny/ny-23-nycrr-part-200-bitlicense-final-2015.pdf (retrieved via the Internet Archive copy of the NYDFS PDF, because dfs.ny.gov blocks scripted downloads). [S1] Later amendments to Part 200 (if any) are not in that copy (gap).
  • Who needs it. NYDFS summarizes five activities: transmitting virtual currency, holding custody of it for others, buying and selling it as a customer business, running an exchange, and "controlling, administering or issuing" a virtual currency. Exempt: consumers investing for themselves, merchants that only accept virtual currency as payment, and recipients of charitable donations. A minimum $500,000 surety bond or trust account is mentioned on the NYDFS page. [S2]
  • Limited purpose trust charter. NYDFS says a trust charter lets a firm exercise fiduciary powers (a BitLicensee cannot) and conduct money transmission without a separate transmitter licence; applications go through banking procedures, not NMLS. [S2]
  • Conditional BitLicense. NYDFS sought comment on a conditional-licence framework (industry letter 2020-06-24). [S2]

NYDFS virtual-currency guidance (industry letters)

Date Guidance Note Source
2018-02-07 Prevention of market manipulation and other wrongful activity — [S2]
2022-04-28 Use of blockchain analytics — [S2]
2022-06-08 Issuance of US dollar-backed stablecoins (full redeemability, reserve segregation, attestations) Full copy saved nydfs-il-2022-06-08-usd-stablecoins.html [S5]
2023-01-23 Custodial structures for customer protection in insolvency Full copy saved nydfs-il-2023-01-23-custodial-structures.html; replaced 2025-09-30 [S6]
2023-09-18 General framework for "greenlisted" coins — [S2]
2023-11-15 Listing of virtual currencies (coin-listing policy) — [S2]
2024-01-22 Character-and-fitness assessment guidance — [S2]
2025-01-16 Notice on "rapidly proliferating, sentiment-based virtual currencies" (meme coins) Full copy saved nydfs-il-2025-01-14-sentiment-based-vc.html [S9]
2025-09-30 Updated custodial-structures guidance (signed by Superintendent Adrienne A. Harris): customer coins must be segregated and accounted for separately; customer keeps the equitable and beneficial interest; custodian may not use customer assets for itself or as collateral; new sub-custodians need prior NYDFS approval and must be NYDFS-licensed or under "substantially similar" oversight; written disclosures acknowledged by the customer. Effective immediately. Summary only (page blocks download) [S10]
2026-06-09 Proposed stablecoin regulation (press release): reserve composition, redemption, independent audits, per-custodian reserve limits, risk-management programs; meant to harmonize the 2022 guidance with the federal GENIUS Act and Treasury's certification of state regimes; 10-day pre-proposal comment then 60 days after State Register publication; to take effect with the GENIUS Act, one-year transition for existing NY issuers NYCRR part number not stated in the release (gap) [S7]
2026-10-01 MOU with the Wyoming Division of Banking: coordinated licensing/chartering for firms in both states, sharing of examinations and reviews, possible joint exams, exchange of enforcement notices. Quotes from Acting Superintendent Asrow and Wyoming Commissioner Jeremiah Bishop. No passporting. — [S8]

2. Other virtual-currency-specific statutes

  • Proof-of-work mining moratorium — Chapter 628 of 2022 (A 7389-C, Assemblymember Kelles; same as S 6486-D, Senator Parker). Signed by Gov. Hochul 2022-11-22 with approval memo 26. Adds ECL § 19-0331: for two years from the effective date, DEC may not approve new air permits, or renewals that increase energy used for PoW mining, for carbon-fuel power plants supplying behind-the-meter power to PoW miners; DEC must prepare a generic environmental impact statement (GEIS). Full bill text saved: sources/states/ny/ny-2021-s6486d-a7389c-pow-mining-moratorium-ch628-2022.pdf. [S4][S11]
  • The 2025 extension bill A 5353 (Kelles) — would have run the moratorium until one year after the GEIS and required PSC/NYISO approval of PoW grid connections — had its enacting clause stricken on 2025-07-16. [S14] Whether the GEIS was completed is not confirmed (gap).
  • Uniform Commercial Code Article 12 (controllable electronic records): A 3307 / S 1840 (2025) still pending per NCSL (March 2026). [S15]

3. Crypto ATM / kiosk law

  • No enacted New York kiosk statute was found as of 2026-10-09.
  • S 9891-B (Sen. James Sanders Jr.; co-sponsors Cleare, Comrie), "An act to amend the banking law, in relation to crypto kiosks." Introduced 2026-04-13; passed Senate 2026-06-03, 59-2; delivered to the Assembly and referred to Codes. Main terms: NYDFS licence for kiosk and "cashier" exchanges; $1,000 per day and $10,000 per month per consumer across all of an operator's machines; total fees capped at the greater of $5 or 3%; 72-hour hold on transactions over $1,500 in 72 hours, with cancellation and full refund; refunds for documented fraud; blockchain analytics; warning labels; live customer service 8 a.m.–10 p.m.; civil penalties up to $1,000 per violation or twice the profit; Attorney General enforcement. The sponsor memo cites $333 million in 2025 kiosk-scam losses nationally, 86% of victims aged 60+. [S12]
  • A 10899-C (Assemblymember Vanel), same as S 9891-B: amended and recommitted to Assembly Rules 2026-05-29. [S13]
  • Status: pending; the regular session ended without Assembly passage, so the bills die at the end of 2026 unless taken up in a special session. [S12][S13]

4. Tax treatment

  • TSB-M-14(5)C, (7)I, (17)S — "Tax Department Policy on Transactions Using Convertible Virtual Currency," 2014-12-05. Follows IRS Notice 2014-21 (virtual currency is property). For sales tax, convertible virtual currency is intangible property; using it to buy goods or services is a barter, and sales tax is due on the taxable goods or services received, but not on the virtual currency. Corporation and personal income tax follow the federal treatment. Full copy saved: sources/states/ny/ny-dtf-tsb-m-14-5c-7i-17s-virtual-currency-2014.pdf. [S3]
  • Pending tax bills (none passed): S 8518 / A 9138 (Sen. Krueger) — tiered excise tax on electricity used for PoW mining (no tax on the first 2.25 million kWh, then 2–5 cents per kWh; renewable off-grid exempt; would start 2027-01-01; sponsor projects >$700 million); in Senate Energy and Telecommunications since 2026-01-07. [S17] A 8966 — 0.2% tax on digital-asset transactions (pending per NCSL). [S15]

5. Notable enforcement

NYDFS consent orders (BitLicense / virtual-currency related)

Date Firm Amount Core finding Source
2022-08-02 Robinhood Crypto, LLC $30 million penalty AML and cybersecurity failures; outdated transaction monitoring [S18]
2023-01-04 Coinbase, Inc. $50 million penalty + $50 million compliance investment over two years "Wide-ranging and long-standing" AML/KYC failures [S19]
2023-03-16 BitPay, Inc. not checked (gap) Cybersecurity / virtual currency [S20]
2023-05-01 bitFlyer USA, Inc. not checked (gap) Virtual currency [S20]
2024-01-11 Genesis Global Trading, Inc. reported as $8 million (unverified) Virtual currency [S20]
2025-04-10 Block, Inc. (Cash App; BitLicensee since 2018) $40 million penalty AML/CDD failures; "lax treatment of high-risk Bitcoin transactions" [S21]
2025-08-07 Paxos Trust Company, LLC reported as $26.5 million penalty + $22 million compliance investment (unverified) Banks and trusts (related to Binance/BUSD) (unverified) [S20]

(The 2026-08-31 $250,000 Order Express settlement listed on the NYDFS page is a cybersecurity case against a fiat money transmitter, not a crypto case. [S22])

New York Attorney General

  • Alex Mashinsky (Celsius Network) — 2026-10-09: settlement of the AG's 2023 suit; lifetime ban from the securities, commodities and crypto industries in New York; up to $35 million owed to New York under stated conditions (e.g., $25 million if he does not forfeit $10 million federally; $10 million if he does not serve his full prison term). The release also cites Uphold ($5 million, April 2026), Galaxy Digital ($200 million, March 2025) and a June 2024 NovaTechFX pyramid-scheme suit. [S23]
  • Earlier, widely reported AG matters (not re-checked here): Bitfinex/Tether $18.5 million settlement (2021); suit against Gemini, Genesis and DCG over Gemini Earn (2023), with a reported $2 billion Genesis settlement (2024). [N1][N2] (details unverified in this check)

Manhattan District Attorney — "CRYPTO Act"

  • S 8901 / A 10246 (Sen. Zellnor Myrie; promoted by Manhattan DA Alvin Bragg, announced 2026-01-16): would make operating an unlicensed virtual-currency business a crime — from a class A misdemeanor up to a class C felony for businesses moving $1 million or more a year. Referred to Senate Banks 2026-01-14; no further action. [S24][N3] Full bill text saved: sources/states/ny/ny-2025-s8901-unlicensed-vc-business-crimes.pdf.

6. Pending bills (2025–2026 session; all die at end of 2026 unless passed)

Bill Subject Status (checked 2026-10-09) Source
S 9891-B / A 10899-C Crypto kiosk licensing, limits, fee cap Passed Senate 2026-06-03; Assembly Rules [S12][S13]
S 8901 / A 10246 Crimes for unlicensed VC business Senate Banks [S24]
S 8518 / A 9138 PoW mining electricity excise tax Senate Energy & Telecom [S17]
A 5353 Extend PoW air-permit moratorium Enacting clause stricken 2025-07-16 [S14]
A 7788 Let state agencies accept Bitcoin, Ether, Litecoin, Bitcoin Cash Pending (NCSL) [S15]
A 8966 0.2% digital-asset transaction tax Pending (NCSL) [S15]
A 7807 Fiat-backed stablecoins as bail Pending (NCSL) [S15]
A 6266 / S 3262 Limited purpose trust company statute Pending (NCSL) [S15]
A 8813 Regulation of business involving virtual currencies Pending (NCSL) [S15]
A 213 / S 3985; S 3801; A 3279 Task forces on state-issued cryptocurrency / digital currency Pending (NCSL). A 2024 task-force bill (S 8136) went to the governor in 2024 (final outcome unverified) [S15]
S 7824 / A 6515 Crimes of "virtual token fraud," "illegal rug pulls," "private key fraud" Pending (NCSL) [S15]
A 10505 DFS study on using Bitcoin to buy life insurance/annuities Pending (NCSL) [S15]
A 3307 / S 1840 UCC 2022 amendments (Article 12) Pending (NCSL) [S15]

No strategic-Bitcoin-reserve bill for New York was found in the sources checked (gap).

7. Contested and fringe claims (flagged, not endorsed)

  • "The BitLicense drove firms out of New York." Long argued by industry figures since 2015 (the "BitLicense exodus"); former NYC Mayor Eric Adams called for scrapping the BitLicense, per a 2026 news report. [N3] NYDFS and supporters say the licence protects consumers and that many large firms (Coinbase, Block/Cash App, Paxos, Robinhood) hold NY licences. [S2][S19][S21] Policy dispute.
  • Criminalizing unlicensed crypto business. The Manhattan DA says unlicensed operators lack KYC and SAR controls and enable laundering; an analyst at Nansen warned criminal penalties amid unclear rules could chill legitimate firms. The same report says 18 states already criminalize unlicensed crypto operation (count unverified). [N3]
  • PoW mining and climate. Supporters of the moratorium (sponsors Kelles/Parker) frame fossil-fuel PoW mining as conflicting with the state climate law; miners and some unions argued it would cost upstate jobs. Proposed excise tax revenue estimates (>$700 million) are the sponsor's projection. [S4][S17] Contested estimates.
  • Kiosk losses. The $333 million (2025) national loss figure and "86% aged 60+" come from the sponsor memo of S 9891-B, citing FBI-type complaint data; industry groups dispute that kiosks are uniquely responsible for scams. [S12] Advocacy figures.

Sources

Saved full copies are in sources/states/ny/. News and secondary items are summaries only.

  • [S1] NYDFS, 23 NYCRR Part 200 "Virtual Currencies," final adopted text (2015). Original URL https://www.dfs.ny.gov/docs/legal/regulations/adoptions/dfsp200t.pdf ; retrieved 2026-10-09 via https://web.archive.org/web/20200308011937/https://www.dfs.ny.gov/docs/legal/regulations/adoptions/dfsp200t.pdf — saved ny-23-nycrr-part-200-bitlicense-final-2015.pdf
  • [S2] NYDFS, "Virtual Currency Businesses" page (guidance list, BitLicense and trust-charter overview). https://www.dfs.ny.gov/virtual_currency_businesses — read 2026-10-09 (summary; site blocks scripted download)
  • [S3] NY Department of Taxation and Finance, TSB-M-14(5)C, (7)I, (17)S, 2014-12-05. https://www.tax.ny.gov/pdf/memos/multitax/m14_5c_7i_17s.pdf — saved ny-dtf-tsb-m-14-5c-7i-17s-virtual-currency-2014.pdf
  • [S4] NY Senate Open Legislation, S 6486-D (2021–22) bill text. https://legislation.nysenate.gov/pdf/bills/2021/S6486D — saved ny-2021-s6486d-a7389c-pow-mining-moratorium-ch628-2022.pdf
  • [S5] NYDFS Industry Letter, 2022-06-08, "Guidance on the Issuance of U.S. Dollar-Backed Stablecoins." https://www.dfs.ny.gov/industry_guidance/industry_letters/il20220608_issuance_stablecoins — retrieved via Internet Archive snapshot 2026-09-30 — saved nydfs-il-2022-06-08-usd-stablecoins.html
  • [S6] NYDFS Industry Letter, 2023-01-23, custodial structures. https://www.dfs.ny.gov/industry_guidance/industry_letters/il20230123_guidance_custodial_structures — via Internet Archive — saved nydfs-il-2023-01-23-custodial-structures.html
  • [S7] NYDFS press release, 2026-06-09, proposed stablecoin regulation. https://www.dfs.ny.gov/reports_and_publications/press_releases/pr20260609 — read 2026-10-09 (summary)
  • [S8] NYDFS press release, 2026-10-01, NYDFS–Wyoming Division of Banking MOU. https://www.dfs.ny.gov/reports_and_publications/press_releases/pr20261001 — read 2026-10-09 (summary)
  • [S9] NYDFS Industry Letter, 2025-01-16, sentiment-based virtual currencies. https://www.dfs.ny.gov/industry-guidance/industry-letters/il20250114-rapidly-prolif-sentiment-based-vc — via Internet Archive — saved nydfs-il-2025-01-14-sentiment-based-vc.html
  • [S10] NYDFS Industry Letter, 2025-09-30, updated custodial structures. https://www.dfs.ny.gov/industry-guidance/industry-letters/il20250930-updated-guidance-custodial-structures — read 2026-10-09 (summary)
  • [S11] NY Assembly bill status, A 7389-C (2021–22): "11/22/2022 signed chap.628 … approval memo.26." https://nyassembly.gov/leg/?default_fld=&leg_video=&bn=A07389&term=2021&Summary=Y&Actions=Y — read 2026-10-09
  • [S12] NY Senate, S 9891-B (2025–26), crypto kiosks. https://www.nysenate.gov/legislation/bills/2025/S9891 — read 2026-10-09
  • [S13] NY Senate site, A 10899-C (2025–26). https://www.nysenate.gov/legislation/bills/2025/A10899 — read 2026-10-09
  • [S14] NY Senate site, A 5353 (2025–26). https://www.nysenate.gov/legislation/bills/2025/A5353 — read 2026-10-09
  • [S15] NCSL, 2025 and 2026 cryptocurrency legislation pages (2026 page updated 2026-03-25). https://www.ncsl.org/financial-services/cryptocurrency-digital-or-virtual-currency-and-digital-assets-2026-legislation and https://www.ncsl.org/financial-services/cryptocurrency-digital-or-virtual-currency-and-digital-assets-2025-legislation — read 2026-10-09
  • [S16] CSBS, MTMA State Enactments (PDF dated 2026-10-08). https://www.csbs.org/sites/default/files/external-link-files/10.8.26%20MTMA%20State%20Enactments.pdf
  • [S17] NY Senate, S 8518 (2025–26). https://www.nysenate.gov/legislation/bills/2025/S8518 — read 2026-10-09
  • [S18] NYDFS press release, 2022-08-02, Robinhood Crypto. https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202208021 — read 2026-10-09
  • [S19] NYDFS press release, 2023-01-04, Coinbase. https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202301041 — read 2026-10-09
  • [S20] NYDFS enforcement actions list. https://www.dfs.ny.gov/industry_guidance/enforcement_actions_lfs — read 2026-10-09
  • [S21] NYDFS press release, 2025-04-10, Block, Inc. https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202504101 — read 2026-10-09
  • [S22] JD Supra, "NYDFS Reaches Settlement With Money Transmitter Order Express…" (2026). https://www.jdsupra.com/legalnews/nydfs-reaches-settlement-with-money-7482775 — summary only
  • [S23] NY Attorney General press release, 2026-10-09, Mashinsky ban. https://ag.ny.gov/press-release/2026/attorney-general-james-bans-former-cryptocurrency-ceo-who-defrauded-investors — read 2026-10-09
  • [S24] NY Senate, S 8901 (2025–26). https://www.nysenate.gov/legislation/bills/2025/S8901 — read 2026-10-09; text https://legislation.nysenate.gov/pdf/bills/2025/S8901 — saved ny-2025-s8901-unlicensed-vc-business-crimes.pdf
  • [N1] UPI, "$2B New York settlement to maximize recoveries for bankrupt crypto firm investors," 2024-05-20. https://www.upi.com/Top_News/US/2024/05/20/crypto-bankruptcy-new-york-settlement-genesis/9831716225361 — headline seen only (unverified)
  • [N2] Insurance Journal, "New York Attorney General Triples Size of Crypto Fraud Lawsuit to $3 Billion," 2024-02-14. https://www.insurancejournal.com/news/east/2024/02/14/760676.htm — headline seen only (unverified)
  • [N3] Yahoo Finance, "Manhattan DA Pushes Criminal Penalties for Unlicensed Crypto Operators," 2026-01-16. https://finance.yahoo.com/news/manhattan-da-pushes-criminal-penalties-122525922.html — summary only