Banking institutions which aim to get involved in activities related to virtual currencies should consider adopting blockchain analysis tools for additional risk management capacities, New York State Financial Services Department Director Adrienne A. Harris said on Wednesday September 17 on Wednesday.
Blockchain analysis tools can improve compliance programs for banking institutions and prevent illegal activities, Harris said in a press release announcing a new advice On the use of the tools of banking organizations in New York, which are already considering or carrying out activities related to virtual currency.
According to the press release, Blockchain Analytics can be used to assess exposure to risks thanks to the customer’s portfolio and the verification of funds involving virtual asset service providers; carry out holistic surveillance of exposure to illegal activity and risk management of third parties; Increase reasonable diligence controls to assess the expected and real activity of customers engaged in virtual monetary activity; and weigh the risks associated with virtual currency products or services.
“While traditional banking institutions are developing in virtual currency activities, their compliance functions must adapt, to integrate new tools and technologies to mitigate new and different risks,” Harris said in the press release.
The release said These advice for banking institutions rely on advice it was Emitted to virtual monetary entities regulated by New York State in April 2022.
In this direction, Harris has established the use of Blockchain Analytics Tools as better practice for these entities to prevent and manage financial risks and suspicious activities.
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Blockchain Analytics facilitated transactions monitoring and determine whether a transaction came, for example, from a regulated institution or from a Darknet market, Caitlin BarnettDirector of regulation and compliance with Chain-analysisPymnts said in an interview published in November 2022.
“I remember the first time I saw blockchain analyzes,” said Barnett. “I saw that we get very clear The information that funds come from a source OK or a risky source. We saw very clearly if we obtain funds from a Darknet market or if a customer sent funds to a Darknet market. »»
Pymnts reported in April that Washington’s evolutionary regulatory position was underway to potentially reshape the way banks and guards engage with digital active.
