The New York Department of Financial Services (NYDFS), in charge of regulation for the finance sector, has formed a new department, which primarily aims to provide license and regulations for crypto-focused firms.

As reported on July 23, the NYDFS officially introduced the Research and Innovation Division, which aims to “house the Department’s division responsible for licensing and supervising virtual currencies, and it will assess new efforts to use technology to address financial exclusion.”

According to the NYDFS, any company that deals with the trading and issuing of cryptocurrencies need to obtain a special license, dubbed BitLicense. The process looks to ensure the compliance of crypto-handling firms with a number of specific standards, concerned with disclosure and consumer data protection, which are somewhat considered restrictions in the crypto industry.

Beside introducing the new Research and Innovation Division, the NYDFS also revealed the new recruits of the department. Matthew Homer – former head of policy and research for fintech company Quovo – will be leading the division. Homer also previously worked at the Federal Deposit Insurance Corporation and the United States Agency for International Development.

Matthew Siegel – former Assistant Attorney General employee and current Antitrust Division attorney for the US DOJ – along with Olivia Bumgardner – current NYDFS director, formerly in charge of projects in cybersecurity, financial inclusion and digital currencies fields – will be joining Homer and working under him.

Andrew Lucas – previously a senior counsel at the New York City Law Department – will be providing counselling for the Research and Innovation Division.