The New York Department of Financial Services (DFS) has released an 11-page document outlining guidelines for banks under its jurisdiction wishing to participate in activities involving virtual currencies.

The document explains the process for seeking approval from the agency and details the information it requires for such approval, which must be obtained at least 90 days prior to engaging in activities.

Additionally, approval for any given action does not constitute automatic approval for future activities. Institutions already participating in the crypto industry are instructed to contact the DFS immediately.

The state of New York has long been known for its stringent regulations of the crypto sector, which have been criticized for hindering innovation and progress.

In 2014, it became the first of its kind to introduce a BitLicense, and in June, it implemented stringent requirements for reserves and redeemability for stablecoins. In December, it proposed an annual assessment fee for licensed crypto firms.