The New York State Department of Financial Services (DFS) has implemented a set of customer service standards for virtual currency entities (VCEs) under its regulation. These standards will be monitored by the DFS to assess the effectiveness and efficiency of customer service policies. VCEs will be required to provide records of their policies and procedures, as well as information on customer requests and complaints and the resolution times.
The requirements for customer service are straightforward. During business hours, VCEs must have human customer service representatives available, and outside of business hours, customers should be directed to voicemail. Electronic communications should be acknowledged automatically with an estimated response time. Frequently asked questions (FAQs) should be accessible to both account holders and non-account holders. Additionally, customers should be informed if they are interacting with artificial intelligence.
All customer requests and complaints must be tracked, and the individuals responsible for customer service must be identified to the DFS.
Starting from the third quarter of 2024, VCEs must begin keeping records and gathering customer feedback, which must be made available to the DFS by November 1. Supervisor Adrienne Harris stated on May 30 that these guidelines establish clear expectations for a positive customer experience, benefiting both consumers and businesses.
VCEs are regulated under New York’s BitLicense or as limited-purpose trust companies involved in virtual currency activities. Currently, there are 32 VCEs with BitLicenses or trust charters. These entities are required to cover the costs of supervision, similar to banks and insurance companies, under a DFS regulation introduced in April 2023.
The DFS aims to be the leading regulator of virtual currency. However, the introduction of the BitLicense in 2015 led major crypto firms like Bitfinex, Kraken, and Paxful to leave the state. The BitLicense regime has faced criticism, including from pro-crypto New York City Mayor Eric Adams in April 2022, who described its requirements as stifling. Nevertheless, the DFS strengthened its regulatory control over VCEs in November 2023.
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