- The NYDFS had enhanced its ability to detect illegal activities like fraud and insider trading.
- Superintendent Adrienne Harris recently unveiled new market manipulation risk monitoring tools.
- These measures are meant to keep New York State-regulated entities in check.
The New York Department of Financial Services (NYDFS) has doubled down on illegal activities in the virtual currency industry in the State of New York. The department recently announced that it had enhanced its ability to detect illegal activities like fraud and front running through new insider trading and market manipulation risk monitoring tools.
According to a press release by the department, these enhancements will aid in detecting insider trading and market manipulation associated with the virtual currency firms regulated by the NYDFS. Furthermore, the new measure will help to detect applicants’ exposure to listed virtual currency wallet addresses.
Speaking on the new enhancement, NYDFS Superintendent Adrienne A. Harris said, “This is a significant step in our supervision of the virtual currency industry as it continues to quickly transform and mature. These tools will help us combat financial crime and fraud, hold regulated entities accountable, and further strengthen our national leadership in virtual currency supervision.”
The NYDFS further stated that in light of the recent developments in the crypto market, it had been in close contact with regulated crypto entities in the state of New York. These enhancements are the latest in a series of measures undertaken by the New York regulator in the interest of consumer protection and proper regulation of the industry.
The latest announcement is in line with the guidelines on blockchain analytics, issued by the department in April last year. Amid the heightened uncertainty in the market, the NYDFS issued a consumer protection guidance last month, which laid out the expectation for sound custody and disclosure from virtual currency firms in the event of insolvency.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
