Strategize Contingency Plans to Axe COVID-19 Effect -NDFYS to All Crypto Firms

• The New York State Department of Financial service (NYDFS) has issued fresh guidance to all crypto exchanged.
• They have asked to prepare contingent plans amid the emergency situation.
• They have also mentioned the various outbreaks that could occur citing the ongoings which would add up losses.

Coronavirus, which held a strong grip in the past few months ago in a limited region, is now spreading around the globe like fire. Many countries have undertaken different measures of preventing in this critical phase.

Coronavirus, which held a strong grip in the past few months ago in a limited region, is now spreading around the globe like fire. Many countries have undertaken different measures of preventing in this critical phase.

The Guidance by NYDFS

On 10th March 2020, NYDFS sent out a letter to all cryptocurrency exchanges. It requested all the companies to plan and put forth the strategies to address the operational and financial risk.  The NYDFS has put up a 9 point advisory that listed the institutional plan with those minimum details.

In this 9 point advisory, they have mentioned the plans to safeguard their employees, customers or any third party. It contains mainly of the action that the company would take if any employee is affected or off duty in the wake of COVID-19.

NYDFS, in the second half of the letter, highlights the various other ways financial institutions can be affected by COVID-19. Like a decline in revenues, stock market and interest rates due to virus effect on customers, counterparties or vendors. In these situations, it’s very necessary to carry out the assessment of the financials of the company.

The letter also mentioned specifically about the Virtual currency business, the bad actors who could take advantage of the scenario and carry out their illegal activities. It mentioned with great concern about cybersecurity threats, hacking of virtual currencies. It also mentioned the possibility of the custodial threats during the transfer of the Cold-to- Hot Wallets. 

Final Thought

The whole world is severely high flown by COVID-19. In these parameters, the possible necessary steps are collectively being though to reduce the effect. Amid the crypto market, Stock market and many more are going through a declining phase. It becomes mandatory to follow the guidelines to ensure no illegal activity occurs.