NYDFS Issues New Crypto Firm Guidance for Consumer Complaints

• The New York State Department of Financial Services now requires cryptocurrency service providers to implement complaint resolution mechanisms.
• The regulator will assess the application and efficacy of these policies around resolving customer service requests.

New York’s top financial regulator has issued new guidance which requires cryptocurrency service providers collect relevant data to assess whether they are resolving customer service requests and complaints in a timely and fair manner, it announced Thursday.

The guidance by The New York State Department of Financial Services reflects "expectations" of cryptocurrency service providers to include policies which cover response and resolution monitoring, and reporting. The guidance specifically requires that service providers maintain policy records, including "quarterly analysis of requests and complaints they receive." The guidance also requires crypto companies to provide customers with both a phone and electronic text mechanism to submit requests and complaints.

“Consumers have a right to a transparent and timely process for resolving complaints and answering questions, irrespective of the company or product in question,” said NYDFS Superintendent Adrienne A. Harris. “This guidance outlines clear expectations for a positive customer experience, which benefits both consumers and business.”

The adoption of this policy came after in-depth research which included meetings with key stakeholders, the NYDFS said.

Crypto companies must be regulated by the NYDFS to do business in New York. Harris has previously dismissed theories alleging a coordinated effort among U.S. regulators to cut the crypto industry off from the banking system, dubbed Operation Choke Point 2.0, as "ludicrous" and "silly." Last year, the NYDFS rolled out stricter guidelines for cryptocurrency listing and de-listings, requiring crypto companies to submit their coin listing and delisting policies for approval.

As of now, the NYDFS has levied over $177 million in penalties against cryptocurrency companies that did not comply with different aspects of the law, the DFS said on Thursday.

Read More: NYDFS Rolls Out Stricter Guidelines for Cryptocurrency Listings, De-listings