NYDFS extends blockchain-analytics guidance to banking organizations

What changed

NYDFS told regulated banking organizations engaged in or exposed to virtual-currency activity to consider blockchain analytics for wallet screening, funds verification, transaction monitoring, third-party diligence, and product-risk assessment.

Who it affects

• New York-regulated banking organizations, virtual-asset counterparties, investment advisers, and clients

What is still open

• The controls and analytics coverage DFS will expect for particular risk profiles

What it means for an advisor

• Incorporate analytics capability, coverage, data quality, escalation, and vendor governance into bank and digital-asset counterparty diligence.