NYDFS Directs Banks to Incorporate Blockchain Analytics Into Virtual Currency Risk Programs

On September 17, the New York Department of Financial Services (NYDFS) issued a notice advising all state-chartered banks, credit unions, and foreign bank branches licensed in New York to consider integrating blockchain analytics into their compliance and risk frameworks when engaging in virtual currency-related activity. The notice builds on the Department’s 2022 blockchain analytics guidance for virtual currency licensees and its prior requirement that banks seek approval before launching new…
By: Sheppard Mullin Richter & Hampton LLP