New York regulators have given licensed cryptocurrency companies until May 10, 2027, to bring their advertisements in line with stricter standards. The New York State Department of Financial Services (DFS) wants firms to substantiate promotional claims, disclose important product information and stop presenting their regulatory status inaccurately.
Acting Superintendent Kaitlin Asrow said the guidance is intended to help consumers better understand crypto advertisements and the companies behind them.
DFS Targets Misleading Crypto Marketing Claims
The guidance requires crypto firms to ensure advertisements accurately describe their products and services. Companies must support performance claims with verifiable evidence and avoid exaggerating their regulatory status or suggesting they hold approvals they do not have.
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DFS also requires firms to make customer disclosures prominent and understandable. Advertisements must clearly identify the company offering the product or service.
“For more than a decade, DFS has set the global standard for virtual currency oversight and consumer protection,” Asrow said.
Firms Face Stronger Compliance Responsibilities
Licensed firms must establish internal advertising approval procedures, assign responsible personnel and monitor third-party promoters. They must also address unauthorized use of their brands.
Companies are required to review their marketing procedures annually and maintain records for regulatory inspections.
DFS will check whether firms follow the rules through regular examinations and supervisory reviews. Companies must meet the new requirements by May 10, 2027.
Related: South Korea Eyes Preventive Crypto Freezes When Exchanges Suspect Hacking
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