The New York State Department of Financial Services (NYDFS) issued new guidance on May 30 to improve customer service standards for virtual currency entities (VCEs).
The guidelines will come into effect from November 1.
The NYDFS said these comprehensive guidelines should ensure that VCEs have robust customer service mechanisms equipped to handle customer issues quickly and effectively. VCEs are expected to keep their customer service policies up to date and compliant with all relevant laws and regulations.
NYDFS Superintendent Adrienne A. Harris is leading the initiative and emphasized the importance of transparency and efficiency in customer service for the virtual currency industry. Harris added:
“Consumers have the right to a transparent and timely process for resolving complaints and answering questions, regardless of the company or product in question. This guidance sets clear expectations for a positive customer experience, benefiting both consumers and businesses.”
Monitoring, reporting and compliance
The directive requires VCEs to establish and maintain effective customer service procedures, including multiple channels for submitting requests and complaints, such as telephone and electronic text message mechanisms.
In addition, VCEs must provide customers with regular updates and estimated resolution timelines, track the status of requests, and publish accessible FAQs. When using artificial intelligence (AI) tools in customer service, customers should be informed at the beginning of the interaction and have the option to escalate their issue to a human representative.
VCEs will also be directed to provide quarterly data to the NYDFS, detailing the number of customer service requests and complaints received, the methods of submission, and the topics covered. These reports should also include the average time taken to resolve each issue.
The regulator will review this data to assess the effectiveness of the implemented policies and procedures through ongoing investigations and supervisory oversight.
DFS guidelines also require VCEs to appoint responsible individuals for managing customer service and complaints procedures. This initiative is part of DFS’s broader strategy to enhance regulatory oversight and consumer protection in the evolving virtual currency market.
Improving the regulatory landscape
Before finalizing the guidance, DFS conducted extensive research and consultation with key stakeholders, incorporating their feedback into the new standards. This approach is in line with DFS’s commitment to data-driven policy decisions and adaptive regulatory supervision.
The announcement is part of Chief Inspector Harris’ VOLT initiative, which has significantly expanded the DFS’s capabilities in overseeing the virtual currency industry.
Since its inception, the initiative has resulted in the hiring of more than 60 experts, the adoption of new policies and the levying of $177 million in fines against companies that fail to comply.
Under Harris’ leadership, DFS has issued eight regulatory guidance for the virtual currency industry, aiming to protect consumers, businesses and the market as the sector continues to grow and evolve.