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NYDFS virtual currency techsprint set for March

State Issues NYDFS Fintech Virtual Currency Techsprint

State Issues

On January 21, NYDFS announced the details of its first-of-its-kind techsprint focusing on virtual currency that will open on March 1 and culminate on March 12. As previously covered by InfoBytes, the techsprint is a collaboration with the Conference of State Bank Supervisors and the Alliance for Innovative Regulation, and the objective is “to achieve creative and collaborative prototyping as a step toward smarter regulatory reporting in virtual currency.” NYDFS notes that the virtual format will allow flexibility for the techsprint to include a combination of full-day facilitated exercises and self-paced, team-managed efforts. The teams will work to address one of several problem statements, including (i) “[h]ow can DFS achieve real-time or more frequent access to company financial data from virtual currency licensees and receive early warning signs of financial risks to the companies or their customers?” (i) “[h]ow can DFS obtain real-time transaction data from its licensees and automatically analyze the data to safeguard against illicit financing risks?” and (iii) “[h]ow can DFS use tools such as natural language processing, machine learning, and artificial intelligence to identify risks by processing and analyzing supervisory reports that are submitted by licensees in a wide range of formats?”

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