The New York Department of Financial Services (NYDFS) has requested all state-sanctioned cryptocurrency-firms to submit a detailed plan on how to combat the coronavirus menace.
In a letter dated 10 March, NYDFS sets out a comprehensive list of items that it expects entities in the cryptocurrency sector to cover in their’ preparedness plan;’ involving potential risks caused by the historical corona epidemic.
In its letter, NYDFS asked crypto firms to include details on how to deal with operational disruptions, measures taken to protect its employees, the communication strategy for dealing with customers, and details on how to “manage the effects of the outbreak” in addition to other risks. The letter reads:
“COVID-19 has already had adverse economic effects domestically and globally. It is critical that each regulated entity establish plans to address how it will manage the effects of the outbreak and assess disruptions and other risks to its services and operations.”
Moreover, the regulator has given the crypto firms only 30 days to submit the coronavirus contingency plans. The plans should comprehend all the details covering all the systems, facilities, policies and schemes that would be fundamental to keep running operations even in the absence of key staff members.
In particular, there are currently only 18 crypto firms with the highly coveted New York BitLicense, which allows them to deal with digital currencies. These firms include Coinbase, Tagomi, Gemini, Ripple, Square, Coinsource and Circle, among others.
Coinbase submitted ‘preparedness plan’ last month
Interestingly, giant cryptocurrency exchange firm, Coinbase issued its coronavirus preparedness plan back in February. As countries, firms and individuals prepare for the worst following the spread of the deadly virus; crypto firm Coinbase already has a contingency plan on how it will navigate through this period of uncertainty.
Interestingly, Coinbase issued its plan for the preparation of coronavirus back in February. As countries, firms and individuals prepare for the worst after the spread of the deadly virus; the crypto firm Coinbase already has a contingency plan on how to navigate through this period of uncertainty.
The giant exchange which has offices in the United States, Ireland, Japan, and the U.K.; planned for three phases of the deadly virus. According to the document shared by the firm last month:
“We have a standing Crisis Management Team continually reviewing new information as it comes in. We have established a four tier escalation ladder (from tier 0 to tier 3) in response to changes that impact Coinbase offices.”
As per the document, for instance, there are 100 cases of infection within the commuting radius of a given Coinbase office; the management will ask certain individuals to conduct their operations from home. Moreover, the management will also step up the cleaning schedule of those offices; as well as installing necessary equipment and facilities such as mask disposal bins
Moving forward, the NYDFS demand provides a quick view of the state’s response to an epidemic that spreads like a wildfire. Even before the request was made, New York City Mayor Bill de Blasio had long declared a state of emergency to counter the spread of a highly communicable disease.
Global Markets hit hard by COVID-19
As a result of the tension created by coronavirus across the world; the cryptocurrency market has suffered huge blows as traditional markets and U.S. stocks; suffer their heaviest plunge in over 30 years.
The price of the world’s most popular cryptocurrency plummeted by more than 40% within 48 hours. Many technology firms have resolved in asking their employees to work remotely and a number of cryptocurrency events have been canceled world wide.
