NYDFS invites crypto companies in New York to implement Blockchain services and analysis tools – DiarioBitcoin

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NYDFS invites crypto companies in New York to implement Blockchain services and analysis tools - DiarioBitcoin For Angel Di Matteo @shadowargel

According to NYDFS, new technologies like blockchain They allow these companies in the crypto sector to comply with the provisions established in current laws, and take care that transactions with cryptocurrencies are not used for illicit purposes.

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The Department of New York State Financial Services (NYDFS) invited all companies in the crypto ecosystem that work at the regional level to implement services and analysis tools blockchain.

The announcement of the NYDFS came to place in a new statement published on its official site, in which it urges the entities under its jurisdiction to implement this as a standard, precisely highlighting the benefits associated with the use of these technologies to guarantee values ​​such as transparency and due compliance with current regulations.

In this regard, the statement reads:

“The purpose of this guidance from the New York State Department of Financial Services… is to emphasize all virtual currency business entities authorized under 23 NYCRR Part 200 or… as a limited purpose trust company under the New York Banking Law , the importance of Blockchain analytics for effective policies, processes, and procedures, including, for example, those related to customer due diligence, transaction monitoring, and sanctions assessment.”

Adapting to the possibilities of new technologies

Although the organization has not had any type of conflict with the use of blockchain, It is especially interesting that it highlights the importance of implementing tools based on this technology, especially in light of the possibilities that cryptocurrency transactions bring to move value without restrictions seen in the traditional finance sector.

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In that sense, the NYDFS clarify that “Financial activities involving the use of digital currencies could involve… different sources, destinations and types of fund flows than those found in fiat currency contexts”highlighting that even pseudonyms can be used and trusted third parties are dispensed with “regulated”. Therefore, in attention to Banking Law and the New York Financial Services Law, as well as the Federal Bank Secrecy/Anti-Money Laundering Act (BSA/AML) and the guidelines of the Office of Foreign Assets Control (OFAC), it is important to ensure compliance programs that take the precautions associated with the case.

On the proposal of analysis tools and services blockchain, the NYDFS clarifies:

“While such features present compliance challenges, they also bring new possibilities for control measures that take advantage of these new technologies. For example, digital currencies, by their nature, generally allow provenance tracing (ie review of previous transfers or “hops” along the Blockchain, or ‘on the network’). Put another way, the immutability of Blockchain generally allows for a historical view of a transmission… between addresses, providing the opportunity for greater visibility into transaction history than is typically found with traditional fiat fund transfers.”

The possibilities of blockchain

Following up on this idea, Superintendent Adrienne Harris commented:

“Blockchain analytics tools provide businesses with an efficient, data-driven way to conduct customer due diligence, transaction monitoring, and penalty screening, among other things, which are critical elements of our regulation for blockchains. virtual currencies. We expect regulated entities to use best practices to maintain the safety and soundness of the virtual currency market, thereby adequately protecting consumers.”

The request goes hand in hand with what has been exposed by enthusiasts and analysts, who indicate that blockchain It brings with it many benefits, especially highlighting aspects such as transparency and traceability of operations through a public network.

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Source: TheBlockCrypto, NYDFS

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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