Regulation
NYDFS sets new guidelines for crypto companies to improve customer service standards
The New York State Department of Financial Services (NYDFS) has released new guidelines on May 30 to improve customer service standards for virtual currency entities (VCE).
The guidelines will come into effect from November 1.
The NYDFS said these comprehensive guidelines aim to ensure that VCEs have robust customer service mechanisms equipped to handle customer issues quickly and efficiently. VCEs are expected to keep their customer service policies up to date and in compliance with all relevant laws and regulations.
NYDFS Superintendent Adrienne A. Harris is leading the initiative and has emphasized the importance of transparency and efficient customer service to the virtual currency industry. Harris added:
“Consumers are entitled to a transparent and timely process for resolving complaints and answering questions, regardless of the company or product in question. These guidelines set clear expectations for a positive customer experience that benefits both consumers and businesses.
Monitoring, reporting and compliance
The guidelines require VCEs to establish and maintain effective customer service procedures, including multiple channels for submitting inquiries and complaints, such as telephone and text message mechanisms.
Additionally, VCEs must provide customers with regular updates and estimated resolution times, track the status of requests, and publish accessible FAQs. If artificial intelligence (AI) tools are used in customer service, customers should be informed at the start of the interaction and given the opportunity to escalate their issue to a human representative.
VCEs will also be mandated to provide quarterly data to the NYDFS, detailing the number of customer service requests and complaints received, methods of submission, and topics covered. These reports should also include the average time taken to resolve each issue.
The regulator will review these records to assess the effectiveness of the implemented policies and procedures through ongoing reviews and supervisory monitoring.
The DFS guidelines also require VCEs to designate individuals responsible for managing customer service and complaints procedures. This initiative is part of the DFS’s broader strategy to improve regulatory oversight and consumer protection in the evolving virtual currency market.
Improving the regulatory landscape
Before finalizing the guidance, DFS conducted extensive research and consultation with key stakeholders, incorporating their feedback into the new standards. This approach aligns with DFS’s commitment to data-driven policy decisions and adaptive regulatory oversight.
The announcement is part of Superintendent Harris’ VOLT initiative, which has significantly expanded DFS’s capabilities in oversee the virtual currency industry.
Since its inception, the initiative has led to the hiring of more than 60 experts, the establishment of new policies and the imposition of $177 million in penalties against non-compliant virtual currency companies.
Under Harris’ leadership, DFS released eight pieces of regulatory guidance for the virtual currency industry, aimed at protecting consumers, businesses and the market as the industry continues to grow and evolve.