New York Regulators Push Banks to Adopt Blockchain Analytics
The post New York Regulators Push Banks to Adopt Blockchain Analytics appeared on BitcoinEthereumNews.com. New York’s top financial regulator urged banks to adopt blockchain analytics, signaling tighter oversight of crypto-linked risks. The move reflects regulators’ concern that traditional institutions face rising exposure to digital assets. While crypto-native firms already rely on monitoring tools, the Department of Financial Services now expects banks to use them to detect illicit activity. NYDFS Outlines Compliance Expectations The notice, issued on Wednesday by Superintendent Adrienne Harris, applies to all state-chartered banks and foreign branches. In its industry letter, the New York State Department of Financial Services (NYDFS) emphasized that blockchain analytics should be integrated into compliance programs according to each bank’s size, operations, and risk appetite. Sponsored Sponsored The regulator cautioned that crypto markets evolve quickly, requiring institutions to update frameworks regularly. “Emerging technologies introduce evolving threats that require enhanced monitoring tools,” the notice stated. It stressed the need for banks to prevent money laundering, sanctions violations, and other illicit finance linked to virtual currency transactions. To that end, the Department listed specific areas where blockchain analytics can be applied: Screening customer wallets with crypto exposure to assess risks. Verifying the origin of funds from virtual asset service providers (VASPs). Monitoring the ecosystem holistically to detect money laundering or sanctions exposure. Identifying and assessing counterparties, such as third-party VASPs. Evaluating expected versus actual transaction activity, including dollar thresholds. Weighing risks tied to new digital asset products before rollout. These examples highlight how institutions can tailor monitoring tools to strengthen their risk management frameworks. The guidance expands on NYDFS’s Virtual Currency-Related Activities (VCRA) framework, which has governed crypto oversight in the state since 2022. Regulators Signal Broader Impact Market observers say the notice is less about new rules and more about clarifying expectations. By formalizing the role of blockchain analytics in traditional finance, New York is reinforcing the idea that…
The post New York Regulators Push Banks to Adopt Blockchain Analytics appeared on BitcoinEthereumNews.com.
New York’s top financial regulator urged banks to adopt blockchain analytics, signaling tighter oversight of crypto-linked risks. The move reflects regulators’ concern that traditional institutions face rising exposure to digital assets. While crypto-native firms already rely on monitoring tools, the Department of Financial Services now expects banks to use them to detect illicit activity. NYDFS Outlines Compliance Expectations The notice, issued on Wednesday by Superintendent Adrienne Harris, applies to all state-chartered banks and foreign branches. In its industry letter, the New York State Department of Financial Services (NYDFS) emphasized that blockchain analytics should be integrated into compliance programs according to each bank’s size, operations, and risk appetite. Sponsored Sponsored The regulator cautioned that crypto markets evolve quickly, requiring institutions to update frameworks regularly. “Emerging technologies introduce evolving threats that require enhanced monitoring tools,” the notice stated. It stressed the need for banks to prevent money laundering, sanctions violations, and other illicit finance linked to virtual currency transactions. To that end, the Department listed specific areas where blockchain analytics can be applied: Screening customer wallets with crypto exposure to assess risks. Verifying the origin of funds from virtual asset service providers (VASPs). Monitoring the ecosystem holistically to detect money laundering or sanctions exposure. Identifying and assessing counterparties, such as third-party VASPs. Evaluating expected versus actual transaction activity, including dollar thresholds. Weighing risks tied to new digital asset products before rollout. These examples highlight how institutions can tailor monitoring tools to strengthen their risk management frameworks. The guidance expands on NYDFS’s Virtual Currency-Related Activities (VCRA) framework, which has governed crypto oversight in the state since 2022. Regulators Signal Broader Impact Market observers say the notice is less about new rules and more about clarifying expectations. By formalizing the role of blockchain analytics in traditional finance, New York is reinforcing the idea that…
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