Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
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?”
On October 15, NYDFS, in collaboration with the Conference of State Bank Supervisors and the Alliance for Innovative Regulation, announced that a first-of-its-kind techsprint focusing on virtual currency will take place early 2021. The techsprint will bring together regulators, fintech and virtual currency industry stakeholders, and experts to collaborate on regulatory compliance solutions. Possible solutions may include “process improvements to a functional prototype of a reporting mechanism,” such as Digital Regulatory Reporting (DRR), which will “give regulators instant access to data provided by firms under their supervision.” Based on the takeaways from the techsprint, NYDFS intends to “develop a set of common standards and an open source technical framework for DRR” that may be adopted by NYDFS and other regulatory agencies. As part of the collaboration, future techsprints will also be developed that focus on other types of nonbank entities subject to financial regulation.
- Buckley Webcast: CRA modernization — All eyes turn to the Fed
- Daniel R. Alonso to discuss "How to become an AUSA" at the New York City Bar Association Minorities in the Courts Committee “How To” series
- Michelle L. Rogers and Kathryn L. Ryan to discuss “Fintech U.S. expansion” at the Tech Nation 3.0 cohort meeting
- Melissa Klimkiewicz to discuss "Flood insurance basics" at the NAFCU Virtual Regulatory Compliance School