Virtual-currency companies licensed or chartered by New York’s Department of Financial Services are expected to update their advertising and marketing policies by May 10, 2027, under guidance announced Thursday.
The guidance calls for accurate claims, clear customer disclosures and a defined process for reviewing promotions for virtual-currency products, services and activities, according to a Nov. 12 news release from the department. Acting Superintendent Kaitlin Asrow issued the guidance.
Claims should be supported and disclosures clear
The department expects regulated companies to review marketing claims to ensure they fairly portray the products, services or activities being promoted. Claims should be evidence-based and verifiable, without exaggerated or false representations of performance or regulatory status.
Customer disclosures should be clear, prominent and easy for a general audience to understand. Advertising and marketing materials should also clearly identify the virtual-currency company providing the product, service or activity.
“Today’s guidance reinforces our commitment to protecting New Yorkers and ensures advertising and marketing practices in the virtual currency space are clear, comprehensive, and accessible,” Asrow said.
Companies expected to assign review responsibilities
The guidance also outlines expectations for how companies oversee their promotions. They should establish a process for reviewing advertising and marketing materials and identify the people responsible for those processes and materials.
That oversight includes due diligence for third-party promoters. Companies are also expected to have a process to monitor potentially fraudulent or otherwise wrongful use of their names or brands and address that misuse promptly.
Along with updating their policies and procedures by the May deadline, companies are expected to review them at least annually. They should maintain records of those policies and procedures for the department to review.
The department said it will assess how companies apply the policies and procedures, as well as how effectively they work, through examinations and supervisory monitoring.
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