Virtual currency firms operating in New York must now adhere to new customer service obligations, as mandated by the New York State Department of Financial Services (NYDFS). Superintendent Adrienne Harris announced the updated guidance on Thursday, requiring “virtual currency entities” (VCEs) to establish policies and procedures for promptly addressing customer service requests and complaints.
The NYDFS defines VCEs as companies possessing New York’s BitLicense or those chartered as limited purpose trust companies under New York Banking Law. Essentially, this encompasses all cryptocurrency businesses licensed to operate in the state.
“Consumers have a right to a transparent and timely process for resolving complaints and answering questions, irrespective of the company or product in question,” Harris stated. “This guidance outlines clear expectations for a positive customer experience, which benefits both consumers and businesses.”
This latest directive is part of NYDFS’s VOLT initiative, aimed at strengthening oversight of virtual currencies. The state has a long history of regulating the crypto industry, having introduced the BitLicense regime in 2015. Notable firms holding virtual currency licenses in New York include Coinbase Inc., Circle Internet Financial, LLC, and Robinhood Crypto.
According to the new guidance, VCEs must provide channels for customers to submit complaints and requests via phone, email, or chat, and must regularly update customers with estimated timelines. Additionally, VCEs are required to maintain a quarterly analysis of the complaints and requests received, which will be monitored by NYDFS. Related policies and procedures must be submitted for NYDFS review by November 1, 2024.