STATE OF NEW YORK
________________________________________________________________________
938
2023-2024 Regular Sessions
IN ASSEMBLY
January 11, 2023
___________
Introduced by M. of A. VANEL -- read once and referred to the Committee
on Science and Technology
AN ACT to amend the financial services law, in relation to requiring
certain disclosures in advertisements involving virtual tokens
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (a) of section 104 of the financial services
2 law is amended by adding a new paragraph 6 to read as follows:
3 (6) "Virtual token" shall mean any interchangeable or non-interchange-
4 able unit of data that is stored on any blockchain ledger which shall
5 include, among other digital units that the superintendent determines to
6 be virtual tokens in accordance with this definition, cryptocurrencies,
7 virtual currencies, digital assets and digital tokens, whether fungible
8 or non-fungible. Virtual tokens shall not be construed to include any of
9 the following:
10 (A) digital units that: (i) are used solely within online gaming plat-
11 forms; (ii) have no market or application outside of those gaming plat-
12 forms; (iii) cannot be converted into, or redeemed for, fiat currency or
13 virtual currency; and (iv) may or may not be redeemable for real-world
14 goods, services, discounts, or purchases;
15 (B) digital units that can be redeemed for goods, services, or
16 purchases as part of a customer affinity or rewards program with the
17 issuer and/or other designated merchants or can be redeemed for digital
18 units in another customer affinity or rewards program, but cannot be
19 converted into, or redeemed for, fiat currency or other virtual curren-
20 cy; or
21 (C) digital units used as part of prepaid cards.
22 § 2. The financial services law is amended by adding a new section 410
23 to read as follows:
24 § 410. Restrictions concerning advertising. (a) No person shall, in
25 any manner, advertise, print, display, publish, distribute, or broad-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01643-01-3
A. 938 2
1 cast, or cause or permit to be advertised, printed, displayed,
2 published, distributed, or broadcasted, any statement or representation
3 with regard to any virtual token for consideration without disclosing
4 the amount of consideration, whether past or prospective, direct or
5 indirect, and the nature thereof.
6 (b) No person shall, in any manner, advertise, print, display,
7 publish, distribute, or broadcast, or cause or permit to be advertised,
8 printed, displayed, published, distributed, or broadcasted, any state-
9 ment or representation with regard to any virtual token or other finan-
10 cial product or service if such statement or representation is, in any
11 manner, false, misleading or deceptive.
12 (c) For the purposes of this section and without limiting subdivisions
13 (a) and (b) of this section, a statement or representation shall be
14 false, misleading and deceptive if it states or implies, directly or
15 indirectly, that a person is authorized legally to offer or provide in
16 New York state or to New York state residents a virtual token or other
17 financial product or service, and such person is not so authorized.
18 § 3. This act shall take effect immediately.
