The New York State Department of Financial Services has renewed its efforts to detect illegal activities in the crypto space.
The New York State Department of Financial Services (NYDFS) has reportedly updated its capability to detect any suspicious or illegal activities being carried out in the digital asset space. The New York State Department has been very proactive in this space in the past and has been keeping up with the latest developments in the industry to regulate the firms in its jurisdiction more effectively.
“The new enhancements will provide the Department with additional capabilities to detect potential insider trading, market manipulation, and front-running activity associated with Department-regulated entities’ and applicants’ exposure or potential exposure to listed virtual currency wallet addresses,” stated an official statement released by the New York State Department, referring to the latest updates, without going into details of the same.
A senior official of NYDFS, Adrienne Harris, also claimed that the latest tools would help them tackle fraud and crime in the digital asset space and help them regulate entities better. The NYDFS has also procured the latest technologies in the blockchain space in the past to counter Russian companies amidst the sanctions implemented by them against Russia.
In the past, the New York State Department of Financial Services has been instrumental in setting up regulatory guidelines for stablecoins and advising banks on the same. It has also fined several crypto entities in the past after it found compliance bottlenecks in its operations. It is also investigating certain crypto firms at present for any non-adherence to guidelines.