The New York State Department of Financial Services (DFS) issued guidance outlining expectations for virtual currency entities to maintain comprehensive advertising and marketing policies covering accurate claims, clear disclosures and formal governance controls. It applies to entities licensed or chartered by DFS to conduct virtual currency business. The scope includes promotional content produced by entities or on their behalf across all formats and audiences, including content labeled as educational.
Marketing claims must be supported by evidence and verifiable, without misleading statements or omissions about costs, performance or regulatory status. For example, advertising must not highlight the absence of trading fees while omitting spreads or markups. Materials describing potential benefits must provide a balanced discussion of risks and avoid promises of financial gain or guarantees against loss. Disclosures must be prominent, understandable and not obscured by their placement or format. They must clearly identify the licensed or chartered provider. Testimonials must disclose that experiences may not be representative and state the nature and amount of any compensation.
Policies must reflect each entity’s size, customer base and business model and undergo annual review and approval by its board or a designated board subcommittee. Governance arrangements should assign responsibilities, establish formal approval and secondary review processes, and retain evidence supporting factual claims and copies of approvals. Controls should also cover due diligence and monitoring of external promoters, compliance by those acting on the entity’s behalf, and timely responses to fraudulent or wrongful use of its brand. The announcement sets May 10, 2027, for policy updates, while the industry letter requires policies consistent with the guidance to be available for DFS review from May 12, 2027.