New York State Department of Financial Services Issues New Guidance Regarding Virtual Currency Advertising and Marketing Requirements
News originally published by
New York State Department of Financial Services
Guidance Emphasizes Department’s Expectation for Comprehensive Disclosure and Review Practices for Licensed Entities
New York State Department of Financial Services (DFS) Acting Superintendent Kaitlin Asrow today issued guidance outlining expectations DFS-regulated virtual currency entities to maintain and implement comprehensive policies and procedures on advertising and marketing materials for virtual currency products, services, and activities. The guidance emphasizes the Department’s expectations for accurate content, clear disclosures, and an established governance and review process.
“For more than a decade, DFS has set the global standard for virtual currency oversight and consumer protection,” said Department of Financial Services Acting Superintendent Kaitlin Asrow. “Today’s guidance reinforces our commitment to protecting New Yorkers and ensures advertising and marketing practices in the virtual currency space are clear, comprehensive, and accessible.”
The guidance applies to virtual currency entities licensed or chartered by the Department (“VCEs”). VCEs are expected to update their policies and procedures for advertising and marketing consistent with this guidance by May 10, 2027, review those policies at least annually, and maintain records of the policies and procedures for Departmental review. Through examinations and supervisory monitoring, the Department will assess the application of these policies and procedures as well as their efficacy.
The Department outlines commonly effective policies and procedures, including:
Avoiding False, Misleading, or Deceptive Content: VCEs are expected to review claims made in marketing materials to ensure they are a fair portrayal of the products, services, or activities and are evidence-based and verifiable, and do not include exaggerated or false representations of performance or regulatory status.
Disclosures: VCEs are expected to review customer disclosures to ensure they are clear, prominent, and easy for a general audience to understand. The VCE providing the product, service, or activity must be clearly identified.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
