Today in crypto, New York and Wyoming agreed to coordinate oversight of crypto companies, Binances use of an EU licensing exemption drew regulatory scrutiny and MetaMask began exiting affected Ethereum staking validators while investigating an undisclosed security incident.
New York, Wyoming team up on crypto oversight
Regulators in New York and Wyoming have agreed to coordinate oversight of crypto companies operating across both states, including licensing reviews, examinations and enforcement actions.
The agreement between the New York State Department of Financial Services (NYDFS) and the Wyoming Division of Banking will allow the regulators to share supervisory information and historical examination data. They also plan to coordinate examination schedules and could conduct joint reviews of firms operating in both jurisdictions.
Crypto companies already regulated in one state could also get a faster path to approval in the other. Firms that have held a license or charter for at least three years without facing enforcement action may qualify for an expedited review, with regulators targeting a decision within six months.
The pact also allows New York and Wyoming to share investigative information and coordinate potential enforcement actions.
The partnership brings together two states with markedly different approaches to crypto. New York has operated its stringent BitLicense regime since 2015, while Wyoming has pursued crypto-focused legislation and specialized banking charters designed to accommodate digital asset businesses.
Binances EU services face scrutiny over licensing exemption: Report
European regulators are reportedly scrutinizing Binances use of a legal exemption to continue serving customers in the EU without authorization under the blocs crypto rules.
The European Securities and Markets Authority (ESMA) and regulators in France, Germany and Greece are examining Binances use of reverse solicitation under the Markets in Crypto-Assets Regulation (MiCA), the Financial Times reported on Thursday.
Binance withdrew its Greek MiCA application in June and said it would seek authorization in another EU member state.
Binance told Cointelegraph on Sept. 18 that it continues pursuing MiCA authorization and remains committed to operating in Europe on a long-term compliant basis.
Binance is relying on reverse solicitation to continue serving some EU customers, the report said, citing a person familiar with the matter.
The exemption allows non-EU crypto asset service providers (CASPs) to serve customers who approach them entirely on their own initiative, but ESMAs guidelines stress that companies cannot use it to circumvent MiCA requirements.
MetaMask exits Ethereum validators amid undisclosed security incident
MetaMask has announced it is responding to a security incident affecting part of its infrastructure and is exiting affected staking validators as a precaution.
In an update on Wednesday, MetaMask said it was addressing the ongoing threat internally and was working with external partners and security advisors. It did not share what the security issue was but said it has not identified any immediate threat to MetaMask wallets.
MetaMask manages over $3 billion of staked Ether (ETH) through its infrastructure, according to its website, making it a major gateway for users wanting to stake their Ethereum.
MetaMask said the precautionary measures involve validators within its non-custodial staking operations.