Requires certain disclosures by a developer of virtual tokens in advertisements involving such virtual tokens; provides restrictions concerning advertising.

New York Assembly Bill A00391 requires developers of virtual tokens to disclose the amount and nature of any compensation they receive when advertising these tokens. This means that if a developer is paid to promote a virtual token, they must clearly state how much they were paid and the form of payment, whether it's money, tokens, or other benefits. The bill aims to ensure transparency in virtual token advertisements, helping consumers make informed decisions.

Supporters of the bill argue that it enhances consumer protection by promoting transparency in the rapidly growing virtual token market. By requiring clear disclosures of compensation in advertisements, the legislation aims to prevent misleading promotions and build trust among investors and consumers.

Critics contend that the bill could impose additional regulatory burdens on developers and advertisers, potentially stifling innovation in the virtual token industry. They also express concerns about the enforceability of the disclosure requirements and whether they might deter legitimate promotional activities.