Regulation
NYDFS Sets New Guidelines for Crypto Firms to Improve Customer Service Standards
This was released by the New York State Department of Financial Services (NYDFS). new guidelines on May 30 to improve customer service standards for virtual currency entities (VCEs).
The guidelines will come into effect starting November 1st.
The NYDFS said these comprehensive guidelines aim to ensure that VCEs have robust customer service mechanisms equipped to handle customer issues quickly and effectively. VCEs are expected to keep customer service policies up to date and comply with all relevant laws and regulations.
NYDFS Superintendent Adrienne A. Harris leads the initiative and highlights the importance of transparency and efficiency in customer service for the virtual currency industry. Harris added:
“Consumers have the right to a transparent and timely process for resolving complaints and answering questions, regardless of the company or product in question. This guidance outlines clear expectations for a positive customer experience, benefiting both consumers and businesses.”
Monitoring, reporting and compliance
The guidance requires VCEs to establish and maintain effective customer service procedures, including multiple channels for submitting inquiries and complaints, such as electronic telephone and text mechanisms.
Additionally, VCEs must provide customers with regular updates and estimated resolution times, monitor the status of requests, and post 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 option to escalate their issue to a human representative.
VCEs will also be responsible for providing quarterly data to NYDFS, detailing the number of customer service requests and complaints received, methods of submission, and topics addressed. These reports should also include the average time taken to resolve each issue.
The regulator will review these documents to evaluate the effectiveness of the policies and procedures implemented through ongoing reviews and supervisory monitoring.
The DFS guidelines also require VCEs to designate responsible individuals for managing customer service and complaints procedures. This initiative is part of DFS’ broader strategy for improve regulatory oversight and consumer protection in the evolving virtual currency market.
Improve 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’ commitment to data-driven policy decisions and adaptive regulatory oversight.
The announcement is part of Superintendent Harris’ VOLT initiative, which has significantly expanded DFS capabilities 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 infusion of $177 million in sanctions against non-compliant virtual currency companies.
Under Harris’ leadership, DFS has issued eight regulatory guidelines for the virtual currency industry, with the goal of safeguarding consumers, businesses and the market as the industry continues to grow and evolve.