New York and Wyoming state regulators have signed an agreement to coordinate cryptocurrency regulation.

New York and Wyoming state financial regulators signed a memorandum of understanding on Thursday to coordinate the regulation of crypto companies operating in both states, covering possible licensing, oversight, and enforcement actions.

The boundaries of record-keeping.

This memorandum of understanding applies to companies that are already under regulation in one state and companies seeking consent in both jurisdictions. Regulatory agencies will share analytical data and audit history information to facilitate the submission of applications, coordinate inspection schedules and aim for joint audits for companies operating in both states.

It's an expedited review channel.

Companies that have operated under an existing license or charter for at least three years and are not subject to mandatory operation may be granted expedited review when seeking approval in another state, with the second-party regulator expecting a decision within six months.

Information sharing and enforcement.

The Memorandum of Understanding establishes a protocol for sharing regulatory reports, market trends information and alerts that may lead to enforcement action. Agencies will share investigative data in stages and may conduct joint, coordinated or separate law enforcement operations.

It's a different approach.

The agreement links two states with different crypto regulatory approaches. New York State has been using the BitLicense system since 20092015 and sets strict licensing standards, while Wyoming is focused on adopting digital asset businesses through cryptocurrency-based laws and regulations as well as a dedicated banking license.[2]

The effects on transnational entrepreneurs.

For the reader, this memorandum of understanding allows crypto companies that must contact both state agencies to have a streamlined application process and scrutiny may be more consistent, but accelerated review rights still require that the company not be subject to enforcement proceedings.