New York sets customer service standards for virtual currency companies.

The New York State Department of Financial Services (DFS) has established customer service standards for DFS-regulated virtual currency entities (VCEs) and will begin monitoring their implementation. Based on VCE’s records, DFS evaluates the adequacy and effectiveness of its customer service policies.

The Department of Financial Services (DFS) sets out detailed requirements for VCE telephone and electronic communications, transparency, and posting of online Frequently Asked Questions (FAQs). The VCE must provide policies and procedures, records of requests and complaints received, and resolution times.

What is good customer service?

The new requirements are largely rudimentary. “Human customer service representatives” must be available during business hours, and customers must be connected to voicemail outside of business hours. Receipt of electronic communications must be automatically acknowledged with an expected response time. Your FAQ should be accessible to viewers who don’t have a company account. Customers must be notified immediately if they interact with an artificial intelligence rather than a human.

All customer requests or complaints must be tracked and a customer service representative must be identified to DFS.

Related: Billionaire Bill Ackman calls for clarity on cryptocurrencies in New York.

Record keeping in the form of charting and customer feedback should begin in the third quarter of 2024 and should be accessible to DFS by November 1. “This guidance sets out clear expectations for a positive customer experience that benefits both consumers and businesses.” Supervisor Adrienne Harris said in her statement May 30:

Regulation for excellence

VCE is regulated through New York’s BitLicense or authorized as a limited purpose trust company to engage in virtual currency business activities. There are currently 32 VCEs with a BitLicense or Trust Charter. They will have to pay supervisory fees, just like banks and insurance institutions, under the DFS rules adopted in April 2023.

The Department of Financial Services (DFS) seeks to be “the preeminent regulator of virtual currencies.” Major cryptocurrency companies including Bitfinex, Kraken and Paxful fled the state when BitLicense was introduced in 2015. The BitLicense regime was criticized for its “suppressive” requirements, especially from New York Mayor Eric Adams, a cryptocurrency advocate, in April 2022. However, DFS tightened regulations on VCE in November 2023.

Magazine: Crypto City: New York Guide