The New York State Department of Financial Services (NYDFS) released new guidelines on May 30 to improve customer service standards for Virtual Currency Entities (VCEs), effective from Nov. 1.

The NYDFS stated that these guidelines are designed to ensure VCEs have strong customer service systems to address customer issues quickly and effectively. VCEs must keep their customer service policies current and compliant with all relevant laws and regulations.

NYDFS Superintendent Adrienne A. Harris emphasized the need for transparency and efficiency in customer service for the virtual currency sector. Harris remarked that consumers deserve a transparent and timely process for resolving complaints and questions, regardless of the company or product involved. The new guidelines set clear expectations for a positive customer experience, benefiting both consumers and businesses.

Monitoring, Reporting, and Compliance

The guidance requires VCEs to implement effective customer service procedures, including multiple channels for submitting requests and complaints, such as phone and electronic text mechanisms. VCEs must also provide customers with regular updates, estimated resolution timelines, and track the status of requests. Additionally, they must publish accessible FAQs. If AI tools are used in customer service, customers must be informed at the start and have the option to escalate issues to a human representative.

VCEs must submit quarterly reports to the NYDFS detailing the number of customer service requests and complaints received, methods of submission, and topics addressed. These reports must also include the average time taken to resolve each issue. The NYDFS will review these records to evaluate the effectiveness of the implemented policies and procedures through ongoing examinations and supervisory monitoring.

The guidelines also require VCEs to designate individuals responsible for managing customer service and complaint procedures. This initiative is part of the NYDFS’s broader strategy to enhance regulatory oversight and consumer protection in the virtual currency market.

Enhancing the regulatory landscape

Before finalizing the guidance, the NYDFS conducted extensive research and consultations with key stakeholders, incorporating their feedback into the new standards. This approach aligns with the NYDFS’s commitment to data-driven policy decisions and adaptive regulatory oversight.

This announcement is part of Superintendent Harris’s VOLT initiative, which has significantly expanded the NYDFS’s capabilities in supervising the virtual currency industry. Since its inception, the initiative has led to the hiring of over 60 experts, the establishment of new policies, and the imposition of $177 million in penalties against non-compliant virtual currency companies.

Under Harris’s leadership, the NYDFS has issued eight pieces of regulatory guidance for the virtual currency industry, aiming to safeguard consumers, businesses, and the market as the sector continues to grow and evolve.