New York State requires cryptocurrency companies to step up fraud prevention

nRunaway Commentary: The New York State Department of Financial Services, which previously caused a big splash in cryptocurrency due to the introduction of the BitLicense framework, recently issued a new guideline for the industry that companies in New York providing cryptocurrency services should take the necessary steps to control fraud Risk, and summarize these actions. For cryptocurrency companies, they really need to take action to protect the interests of investors, which is a necessary condition for this emerging market to continue to develop.n
nTranslation: Inan
The New York State Department of Financial Services (NYDFS) has called on companies that provide cryptocurrency services in the state to step up protective measures to prevent fraud and market manipulation.n
It was NYDFS, which had previously developed the BitLicense regulatory framework, and the department made new guidance to companies in a statement released Wednesday, including those that received New York State approval for cryptocurrency.n
The new guidelines require these companies to implement policies that assess all fraud-related risks, such as market manipulation, and provide measures and controls to protect customers and investors from these risks. It also demanded that virtual currency companies investigate fraud and violations and, after completing their investigations, summarize and make statements about the measures they have taken in response to those acts.n
The head of the department, Maria Vullo, said in a statement:n
n”As the cryptocurrency market continues to evolve, DFS is directing virtual currency companies to take the necessary steps to guard against fraud and to be wary of maneuvers that will allow the market to grow under strong regulation.”n
nThe new DFS guidelines, based on the New York state BitLicense framework, which entered into force in 2015, subsequently sparked controversy within the cryptocurrency ecosystem that left several prominent start-ups out of the field. To date, only a handful of companies have received the official approval to provide such services in New York State.n

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