Proposed Regulations (TL;DR):

    45 days for existing businesses to comply with the new regulations and register with the state.

    Background check required for all employees/founders.

    Fingerprints of the above submitted to FBI.

    Requires a bond held with New York State.

    Requires written approval of all new business activities/offerings.

    Requires that you keep 10 years of records of business transactions.

    Virtual currency accounts not active for 5 years must be handed over to the state.

    Retained earnings and profits of the company can ONLY be invested in US dollars: Federal bonds, state bonds, or money market funds.

    Mandatory reviews every 2 years: financial condition, safety/soundness of business, policies...

    Quarterly financial statements required within 45 days of the closing of each quarter.

    Financial statements must be audited, use GAAP.

    Typical AML/KYC requirements.

    Cybersecurity requirement: requires security officer, security plan, audits, backup plan.

    In marketing/advertising, you must include "Licensed to engage in Virtual Currency Business Activity by the New York State Department of Financial Services."

    Must disclose a long list of material risks with dealing with virtual currency: e.g., "not legal tender, backed by any government"