The New York State Department of Financial Services (NYDFS) has advised firms entering the crypto space to utilize blockchain analytics tools to enhance their risk management and compliance efforts.
As traditional banking institutions venture into virtual currencies in response to a more favorable regulatory landscape, the NYDFS has emphasized that these firms should consider integrating blockchain analytics as a vital risk management resource.
These tools can help assess risk exposure through customer wallet screenings and funds verification, enable comprehensive monitoring for illicit activities, and evaluate the risks linked to crypto products and services. NYDFS Superintendent Adrienne Harris stated, “As traditional banking institutions expand into virtual currency activities, their compliance functions must adapt, onboarding new tools and technologies to mitigate new and different risks.”