Skip to main content
Menu Icon

InfoBytes Blog

Financial Services Law Insights and Observations

NYDFS pens guidance for virtual currency companies on customer service

Securities NYDFS Guidance Artificial Intelligence Virtual Currency Customer Due Diligence


On May 30, NYDFS issued an industry guidance letter for all virtual currency businesses licensed under 23 NYCRR Part 200 and others. The guidance was created in the hopes to foster a more transparent and responsive environment for customers engaging with virtual currency businesses. The guidance emphasized the need for virtual currency businesses to address customer inquiries and complaints in a "timely and fair manner." NYDFS provided specific recommendations for maintaining effective communication channels, including using phone lines and electronic text communication staffed by trained representatives during normal business hours. Additionally, the guidance emphasized the importance of monitoring and responding to customer inquiries outside of regular business hours.

While the guidance saw the value in employing AI tools for customer service, it stressed the importance of informing customers when they are interacting with AI. It also required that customers should always have the option to escalate to a human customer service representative. Rigorous testing and monitoring of AI tools were recommended to ensure the accuracy of information provided to customers.

To assess the effectiveness of their customer service practices, virtual currency businesses were advised to track and analyze key metrics such as the volume of inquiries, response times, and customer feedback. Finally, the guidance mandated that businesses submit quarterly reports to the regulator detailing the number of customer inquiries, complaint topics, and average resolution times. The guidance will go into effect on November 1, and businesses will be expected to have all recommended practices in place by then.