NYDFS Strengthens Crypto Custody Rules to Protect Client Assets in Bankruptcy
The New York State Department of Financial Services (NYDFS) has issued updated regulatory guidelines for licensed cryptocurrency custodians, introducing stricter protections for client assets, particularly in cases of custodian insolvency. The 2025 guidelines, which replace the previous 2023 version, emphasize that beneficial ownership of digital assets must remain with clients even during bankruptcy proceedings. Enhanced…