New York’s top financial regulator is pushing banks to strengthen oversight of virtual currency activities.
On Wednesday, DFS Superintendent Adrienne A. Harris issued new guidance urging state-regulated banking organizations to use blockchain analytics tools as they expand into crypto-related services. The goal: reduce risk, prevent illegal activity, and protect consumers.
Clear expectations for a shifting landscape
“As traditional banking institutions expand into virtual currency activities, their compliance functions must adapt,” Harris said. “DFS will continue to set clear and transparent expectations to protect consumers and safeguard market integrity.”
The guidance encourages banks to use blockchain analytics to:
- Screen customer wallets and verify funds
- Monitor third parties for signs of illicit activity
- Compare expected vs. actual crypto transactions
- Evaluate risks tied to new crypto products and services
The announcement builds on previous guidance issued to virtual currency firms under DFS regulation. Now, those standards are extending to banks as digital asset adoption grows.
A push for technology-driven compliance
DFS described blockchain analytics tools as a key part of modern risk management — especially as crypto activity becomes more common within traditional financial systems.
The full guidance is available on the New York State Department of Financial Services website.
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