Banks, crypto companies diversity data to be collected soon

In an attempt to put an end to racial discrimination and inequality, all financial institutions, including cryptocurrency service providers, in New York will be required to submit their diversity data once the guidelines are ironed out.

The diversity data will be collected by the financial services regulating body in the state’s Department of Financial Services (DFS).

Source of the plan

The plan stemmed from an incident last year, when an official of one of the largest virtual currency service providers in the United States, Brian Armstrong, could not decide on the issue about Black Lives Matter. While he did not categorically support or reject his employees’ Black Lives Matter protest, some of the employees received their separation pay.

It also resulted in the publication of the report by one of the most read and followed media firms, the New York Times, telling that racism and inequality have been practiced by the firm.

Another report also revealed that Coinbase does not pay women and colored people as much as American men.

“Given the limited availability of banking and non-depository financial institution-specific diversity data, making that information public will allow companies to assess where they stand compared to their peers and raise the bar for the entire industry,” New York’s DFS Superintendent Linda Lacewell said.

Data-collection procedure

According to Lacewell’s letter to the industry, the initiative will collect diversity data and publish it for transparency to determine what financial corporations and crypto service institutions practice diversity.

Lacewell also said in the letter that the data collection, which is eyed to kick off in the last quarter of this year, will be carried out through a survey. 

The survey will include questions about race, gender, and ethnicity. 

 

Image courtesy of Cointelegraph News/YouTube

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