The New York Department of Financial Services (DFS) has set regulatory standards for customers of virtual currency entities (VCEs) to evaluate the efficacy of customer service.
The DFS established comprehensive criteria about VCE electronic and telephone communications, transparency, and the publication of frequently asked questions (FAQs) online.
In addition to resolution periods, VCEs will be required to maintain records of the requests and complaints they receive and the policies and procedures that govern them.
Good Customer Service
Primarily, the new requirements are rudimentary. Voicemail should be accessible to consumers outside of business hours, while “human customer service representatives” should be accessible during those times. Automatic confirmation of receipt of electronic communications accompanied by an estimated response time is required.
Frequently Asked Questions should be accessible to visitors without an account with the organization. It is imperative to promptly notify customers if they interact with artificial intelligence instead of human being.
It is imperative to monitor and record each customer request or complaint while also identifying the individual or individuals accountable for customer service for the DFS.
The DFS must have access to recordkeeping through tabulation and customer feedback by November 1, 2024. Recordkeeping must commence in the third quarter of 2024.
Supervising Supervisor Adrienne Harris issued the following statement on May 30: “This guidance establishes explicit standards for a favorable customer experience, which is advantageous for both clients and the company.”
VCEs that engage in virtual currency business activities are chartered as limited-purpose trust corporations or are regulated by New York’s BitLicense. At present, 32 VCEs possess BitLicenses or trust charters. An April 2023 DFS regulation mandates that they bear the same financial obligations for their oversight as insurance and banking institutions.
The primary objective of the DFS is to establish itself as “the preeminent regulator of virtual currency.” Prominent cryptocurrency companies, such as Bitfinex, Kraken, and Paxful, withdrew from the jurisdiction following the implementation of BitLicense in 2015.
Pro-cryptocurrency New York City Mayor Eric Adams criticized the BitLicense regime in April 2022, describing its “stifling” requirements. In November 2023, the DFS tightened its regulatory grasp on VCEs.
