The New York State Department of Financial Services (NYDFS) announced this Monday that Consumer protection guide when cryptocurrencies go bankrupt after the digital currency collapsed last year, several companies went bankrupt: FTX Sector, Celsius Network, and most recently Genesis Global Capital.

“Today’s guidance serves as a reminder to DFS-regulated cryptocurrency companies of our expectations regarding the custody of customer assets,” NYDFS Supervisor Adrienne Harris said in a statement today.

New York Cryptocurrency Regulations Requires an entity: We hold cryptocurrencies in a way that protects customer assets, maintains records, properly discloses terms related to our products, and does not use marketing fraudulently.

“DFS has used and will continue to use all regulatory tools to keep pace with the industry, make data-driven policy decisions, and proactively respond to the cryptocurrency market,” the statement said. I’m here.

Further, the agency said it conducted a “robust analysis of the existing regulatory landscape and market trends” to implement the guide.

NYDFS started handling this type of digital currency in 2015.

Last week, the lending arm of cryptocurrency company Genesis applied Bankruptcy protection from US creditors.

As part of that, FTX, one of the leading cryptocurrency platforms with a $32 billion valuation, Caused havoc in the sector after a rapid collapse After many users rushed to withdraw their funds amid reports questioning the company’s solvency.

Its founder, Sam Bankman-Fried, has been accused of multiple crimes by US authorities and has pleaded not guilty in federal court in New York. Headquarters. Your company.

The 30-year-old is under house arrest at his parents’ home after agreeing to an unprecedented $250 million bail. From there, he continues to defend his activism, criticizing the fact that FTX was forced into bankruptcy and the way that process was managed.