N.Y. Comp. Codes R. & Regs. tit. 23 § 102.2

Current through Register Vol. 46, No. 36, September 4, 2024

Section 102.2 - Definitions

The following definitions apply in this Part:

(a)Hourly Rate means the average hourly salary and fringe benefit cost of the examiners and staff assigned to the supervision of Licensees plus a multiplier, as determined by the superintendent, representing a portion of the other operating overhead expenses of the Department.

(b)Custody Basis means the measurement tool used to assess 50% of the Supervisory Hours, as defined below, among Licensees. The Custody Basis is based on the total United States Dollar value of virtual currency held on behalf of customers by each Licensee averaged over the prior four quarter-end balances reported. Depending on the total virtual currency custody average, the Custody Basis for each Licensee will be categorized by size as small, medium, or large, resulting in an allocation, respectively, of 5%, 15%, and 30% of 50% of the Supervisory Hours.

(c)Custody Basis Assessment for an individual Licensee means the product of the Custody Basis Hours and the Hourly Rate.

(d)Custody Basis Hours means the Custody Basis share of either 5%, 15%, or 30% of the total Supervisory Hours, divided by the total number of Licensees that have the same Custody Basis share.

(e)Licensee means any person who is licensed pursuant to 23 NYCRR Part 200. The term Licensee shall only apply to the virtual currency business activities, as that term is defined in 23 NYCRR 200.2(q), of persons licensed pursuant to 23 NYCRR Part 200.

(f)Person means an individual, partnership, corporation, association, joint stock association, trust, or other entity, however organized.

(g)Regulatory Component represents the cost of examining licensees. For an individual Licensee means the Total Operating Cost, as defined below, less the Supervisory Component divided by the total number of Licensees.

(h)Supervisory Component for an individual Licensee means the sum of its Transaction Volume Basis Assessment, as defined below, and its Custody Basis Assessment.

(i)Supervisory Hours means the total number of hours worked by staff attributable to the ongoing supervision of Licensees, including the monitoring of Licensees, the processing of license or material business changes, and responding to inquiries.

(j)Total Operating Cost means:

(1) the sum of the total operating expenses of the Department that are solely attributable to its oversight of Licensees; and

(2) the proportion deemed just and reasonable by the superintendent of the other operating overhead expenses of the Department which may be assessed against Licensees under FSL section 206(a).

(k)Transaction Basis Hours means the Transaction Volume Basis, as defined below, share of either 5%, 15%, or 30% of the total Supervisory Hours, divided by the total number of Licensees that have the same Transaction Volume Basis share.

(l)Transaction Volume Basis means the measurement tool used to allocate 50% of the Supervisory Hours among Licensees. The Transaction Volume Basis is based on the total number of virtual currency transactions by each Licensee in New York for the prior calendar year. Depending on the total number of virtual currency transactions, the Transaction Volume Basis for each Licensee will be categorized by size as small, medium, or large, resulting in an allocation, respectively, of 5%, 15%, and 30% of 50% of the Supervisory Hours.

(m)Transaction Volume Basis Assessment for an individual Licensee means the product of the Transaction Basis Hours and the Hourly Rate.

N.Y. Comp. Codes R. & Regs. Tit. 23 § 102.2

Adopted New York State Register April 19, 2023/Volume XLV, Issue 16, eff. 4/19/2023