NY Department of Financial Services Sets Customer Service Benchmarks for Digital Currency Entities
Summary:
The New York Department of Financial Services (DFS) has set customer service standards for regulated digital currency entities (DCEs), and will monitor their adherence to these benchmarks. The DFS intends to evaluate customer service processes based on DCE records and will expect DCEs to provide detailed accounts of complaints and resolutions. These regulations will take effect in the third quarter of 2024. This move is part of the DFS's aim to be the leading digital currency regulator, despite significant departures from the state's BitLicense program, due to its stringent requirements.
The New York Department of Financial Services (DFS) has unveiled customer service benchmarks for its regulated digital currency entities (DCEs) and is set to start tracking their execution. The DFS will examine the effectiveness and coherence of customer service protocols based on the records presented by DCEs. DCEs should maintain detailed records of their protocols and interactions, including complaints raised and resolved, and adhere to specific requirements for phone and digital communication, overall transparency, and online FAQs.
The requirements underlined by the DFS are largely fundamental; customer service agents should be accessible during business hours, separate voicemail services should be in place for non-business hours and customers should instantly know if they are communicating with AI or a human.
Every customer query and complaint should be recorded and those accountable for customer service should be clearly identified. The tracking of customer experiences in the form of data and feedback will commence by the third quarter of 2024 and should be available to DFS as of 1 November of the same year.
“As outlined in this guidance, creating a positive customer experience is mutually beneficial for both consumers and businesses,” Adrienne Harris, the Supervisor, said on May 30.
New York's DCEs, currently totaling 32, operate under the state's BitLicense or hold limited-purpose trust company charters that allow them to engage in digital currency ventures. It's mandatory for these entities to cover their supervisory expenses, similar to banks and insurance firms. This regulation was enacted in April 2023.
The DFS aims to become the leading regulator of digital currencies. However, restrictions resulted in the exit of major crypto firms, including Bitfinex, Kraken, and Paxful, from the state in 2015 when BitLicense was first introduced. Even though the BitLicense regime faced criticism, particularly from pro-crypto New York City Mayor Eric Adams in April 2022, for its stringent requirements, the DFS continued to enforce strict regulations on DCEs from November 2023 onwards.
Published At
5/30/2024 8:41:26 PM
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