Financial Watchdog Urges NY-Regulated Banks to Roll Out Blockchain Analytics to Aid in Risk Management

Alexandra Steinberg Barrage was quoted in the New York Law Journal article, "Financial Watchdog Urges NY-Regulated Banks to Roll Out Blockchain Analytics to Aid in Risk Management." Alex discussed the nuances of the New York State Department of Financial Services' new guidance letter. It recommended that regulated banks contemplating or already conducting virtual currency-related activities should consider adding blockchain analytics tools to their risk management practices.

She noted: "I think that the top recommendation is there is an expectation that New York-regulated banks are going to consider this. This is not a regulation. This is the supervisory expectation of DFS that banks that are already using some kind of crypto activity, or thinking about it, are going to incorporate blockchain analytics in their risk management. I think that what the guidance does a good job of saying is it’s going to depend on the actual bank, and the risk profile, and so there’s no one-size-fits-all results for any one bank.”

Read the full New York Law Journal article. Subscription required.