The New York State Department of Financial Services (DFS) has implemented customer service standards for virtual currency entities (VCEs) regulated by the DFS and will commence monitoring their implementation. The DFS will evaluate the adequacy and efficiency of customer service policies based on the records of the VCEs.
The DFS has established detailed requirements for VCEs regarding phone and electronic communications, transparency, and the posting of frequently asked questions (FAQs) online. VCEs are expected to provide records of their policies and procedures, as well as the requests and complaints they receive, along with the time taken to resolve them.
The new requirements primarily focus on basic principles of good customer service. During business hours, VCEs must have “human customer service representatives” available, while voicemail should be provided during off hours. Receipt of electronic communications must be acknowledged automatically, with an estimated response time given. FAQs should be accessible to all viewers, even those without an account with the company. Additionally, customers should be promptly informed if they are interacting with artificial intelligence rather than a human.
Every customer request or complaint must be tracked, and the individuals responsible for customer service must be identified to the DFS.
Recordkeeping, in the form of tabulation and customer feedback, must begin in the third quarter of 2024 and be accessible to the DFS by November 1. Supervisor Adrienne Harris emphasized the importance of this guidance, stating that it sets clear expectations for a positive customer experience that benefits both consumers and businesses in a statement on May 30.
VCEs are regulated through New York’s BitLicense or are chartered 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 their supervisory costs, similar to banks and insurance companies, under a DFS regulation implemented in April 2023.
The DFS aims to be the leading regulator of virtual currency. Several major crypto firms, such as Bitfinex, Kraken, and Paxful, left the state when the BitLicense was introduced in 2015. The BitLicense regime has faced criticism, including from pro-crypto New York City Mayor Eric Adams in April 2022, for its stifling requirements. However, the DFS strengthened its regulatory control over VCEs in November 2023.
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