New York Financial Regulatory Agency Requires Banks to Use Blockchain Analysis Tool to Combat Illegal Activities

BlockBeats News, September 17th, According to TheBlock, the New York State Department of Financial Services (NYDFS) released guidance on Wednesday requiring banks to adopt blockchain analysis technology to combat illegal activities. The regulatory body stated that as traditional banking institutions expand into the virtual currency business, their compliance functions must adapt to the new situation, introducing new tools and technologies to mitigate new risks. The guidance specifically emphasizes the importance of using blockchain analysis tools in areas such as customer wallet risk screening, digital asset product risk assessment, etc., to prevent money laundering, terrorist financing, and sanctions evasion, among other illegal activities.