New York Tightens Customer Service Regulations for Crypto Companies

The New York State Department of Financial Services (DFS) has introduced new guidance mandating regulated cryptocurrency entities to implement customer service policies and procedures. Crypto entities must collect data to ensure timely and fair resolution of issues, maintain records for regulatory review, and provide quarterly analyses.

New York Regulator Requires Crypto Firms to Adopt New Customer Service Guidelines

New York State Department of Financial Services (DFS) announced Thursday that Superintendent Adrienne A. Harris has issued “guidance regarding customer service requests and complaints.” The guidance requires DFS-regulated virtual currency entities (VCEs) “to maintain and implement effective policies and procedures to promptly address customer service requests and complaints,” the announcement details, adding:

The guidance requires VCEs to collect relevant data so that the Department can assess whether they are resolving customer service requests and complaints in a timely and fair manner.

“Today’s guidance reflects DFS expectations of VCEs regarding customer service policies and procedures, including channels or mechanisms, response and resolution monitoring, and reporting,” the DFS added. “The guidance requires licensees to maintain for Departmental review records of their own policies and procedures, as well as quarterly analysis of requests and complaints they receive. Through examinations and supervisory monitoring, the Department will assess the application of these policies and procedures as well as their efficacy.”

The announcement also highlights several key policies and procedures from the guidance. They include offering phone and electronic text options for submitting requests and complaints, providing regular updates and estimated resolution timelines, publishing FAQs accessible without login, tracking requests and complaints with customer satisfaction feedback, and reporting quarterly on the number and nature of requests and complaints along with resolution times. Additionally, entities must provide a copy of their customer service policies, align with the described standards, and specify responsible individuals for overseeing these policies.

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