New York Department of Financial Services establishes new guidelines for crypto firms to improve customer service standards

These new rules, which will be implemented starting November 1, reflect the New York Department of Financial Services’ expectation that crypto companies will handle customer service requests and complaints promptly and fairly.

The New York State Department of Financial Services (NYDFS) released new guidance on May 30 aimed at improving customer service standards for virtual currency entities (VCEs). It is reported that these regulations will come into effect on November 1.

Clear Guidelines

NYDFS emphasized that the purpose of this newly formulated detailed set of guidelines is to ensure that virtual currency entities (VCEs) can establish a strong customer service system that can promptly and effectively solve the problems faced by customers. In addition, VCEs need to continually update their customer service policies and ensure that these policies comply with all relevant laws and regulations.

NYDFS Director Adrienne A. Harris A. Harris is leading the initiative and has emphasized the importance of transparency and efficiency when providing customer service in the virtual currency space. She added:

"Consumers have the right to demand a transparent and timely process for dealing with complaints and queries, regardless of the company or product involved. These guidelines set clear standards to ensure a positive customer experience that has a positive impact on consumers It’s beneficial to both investors and businesses.”

Monitoring, Reporting and Compliance

The guidelines mandate that VCEs establish and continuously operate efficient customer service processes, which include receiving customer inquiries and complaints through various methods such as phone calls and electronic texts.

In addition, VCEs need to regularly update customers on the situation and provide an estimated timetable for resolving issues, as well as track the status of customer requests and make easily accessible FAQs available. When using artificial intelligence (AI) for customer service, customers must be informed at the start of service and given the option to escalate the issue with a human representative.

VCEs will also be required to provide quarterly data to NYDFS detailing the number of customer service requests and complaints received, how they were submitted, and the topics dealt with. These reports must also include the average time required to resolve each issue.

Regulators will review these records regularly and assess the effectiveness of implemented policies and procedures through ongoing review and oversight.

The Department of Financial Services (DFS) guidance also requires virtual currency entities (VCEs) to designate a responsible person to manage customer service and complaints procedures. This move is part of DFS’s broader strategy to increase regulatory oversight and enhance consumer protection in the evolving virtual currency market.

Improve regulatory environment

Before finalizing these guidelines, the Department of Financial Services (DFS) conducted in-depth research and consulted with key stakeholders and incorporated their input into the new standards. This approach reflects DFS’s commitment to relying on data for policy decisions and implementing flexible regulatory oversight.

This announcement is part of the VOLT initiative promoted by Oversight Commissioner Harris, which significantly improves the Department of Financial Services’ effectiveness in regulating the virtual currency industry.

Since the initiative was launched, the program has brought on board more than 60 experts, developed new policies and enforced a total of $177 million in fines against non-compliant virtual currency businesses.

Under Harris’ leadership, the Department of Financial Services (DFS) has issued eight regulatory guidelines for the virtual currency industry, designed to protect consumers, businesses and markets, and support the industry’s continued growth and development.

Conclusion:

Through this series of new guidelines, the New York Department of Financial Services (NYDFS) not only strengthens the regulatory framework for virtual currency entities (VCEs), but also clarifies specific requirements for improving customer service quality. These measures are expected to significantly enhance consumer confidence and promote the healthy development of the virtual currency market. As these guidelines are implemented, we expect to see a more transparent, efficient and user-friendly cryptocurrency services environment.

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