Crypto Companies In New York Forced To Report Customer Processes To NYDFS

Key Points:

• NYDFS mandates VCEs to establish procedures for promptly addressing customer service requests and complaints.
• Superintendent Adrienne Harris emphasizes transparent and timely resolution of customer issues to enhance the customer experience.
• The guidance, part of the VOLT initiative, requires crypto companies in New York to submit customer service policy records for review by November 1, 2024.

New York State’s top financial regulator has issued new guidance mandating that virtual currency entities (VCEs) establish robust customer service policies.

NYDFS Mandates Enhanced Customer Service Procedures for Crypto Companies In New York

According to the New York State Department of Financial Services (NYDFS), crypto companies in New York must have procedures in place to address customer service requests and complaints promptly.

The directive from NYDFS Superintendent Adrienne Harris requires cryptocurrency service providers to implement policies for monitoring, resolving, and reporting customer issues. Specifically, crypto companies in New York must maintain detailed records, including a quarterly analysis of all customer requests and complaints. These records must be available for NYDFS review by November 1, 2024.

“Consumers have a right to a transparent and timely process for resolving complaints and answering questions, irrespective of the company or product in question,” said Superintendent Harris. “ This guidance outlines clear expectations for a positive customer experience, which benefits both consumers and business.”

New Guidance Part of VOLT Initiative

The new guidelines are part of NYDFS’s VOLT initiative, aimed at strengthening oversight of the virtual currency sector. NYDFS, which has been regulating cryptocurrencies since the introduction of its BitLicense regime in 2015, continues to be a prominent regulator in this space. The new measures follow last year’s implementation of stricter rules for cryptocurrency listings and delistings.

Notable crypto companies in New York with virtual currency licenses include Coinbase, Circle, and Robinhood Crypto. However, some companies have ceased operations in the state due to the stringent regulatory environment.

Superintendent Harris has previously refuted claims of a coordinated effort by U.S. regulators to marginalize the crypto industry, dismissing the theory known as Operation Choke Point 2.0. The latest NYDFS guidance underscores the agency’s commitment to ensuring consumer protection while fostering a transparent and accountable cryptocurrency industry.