Updated 2025 guidelines ensure licensed cryptocurrency custodians maintain client ownership during bankruptcy, limit asset lending, and enforce stricter sub-custodian oversight.
The New York State Department of Financial Services has released updated guidelines for licensed virtual currency custodians. The rules ensure that clients retain ownership of their digital assets even during bankruptcy, set guardrails for sub-custodians, and limit the use of client assets without explicit consent. Custodians are also required to provide clear disclosures about asset holdings, third-party involvement, and potential impacts during stressed events.