The New York State Department of Financial Services has published guidance on the use of blockchain analytics tools for New York State banking organizations that are considering or already conducting virtual currency-related activities. The guidance aims to clarify compliance expectations and encourage the use of technology-driven controls to strengthen compliance programs and help prevent illegal activity, building on earlier DFS guidance for New York State-regulated virtual currency entities. New York State-regulated banking organizations are expected to consider incorporating blockchain analytics as an additional risk-management tool. The guidance highlights use cases including customer wallet screening and funds verification involving virtual asset service providers, monitoring for illicit activity exposure and third-party risk management, augmenting due diligence by comparing expected versus actual activity (including dollar thresholds) for customers engaging in virtual currency activity, and assessing risks associated with offering a virtual currency product or service.
New York State Department of Financial Services 2025-09-17
New York State Department of Financial Services issues guidance for banking organizations on using blockchain analytics in virtual currency activities
The New York State Department of Financial Services has issued guidance for banking organizations on using blockchain analytics tools in virtual currency activities. This guidance clarifies compliance expectations and promotes technology-driven controls to enhance compliance programs and prevent illegal activities. It includes use cases such as customer wallet screening, funds verification, and monitoring for illicit activity exposure.