The New York State Department of Financial Services (NYDFS) has instructed banking organizations under its supervision to adopt blockchain analytics tools as part of their compliance frameworks.

The notice, issued on Sept. 17, applies to state-chartered banks and branches of foreign institutions licensed in New York. Superintendent Adrienne Harris suggested the move reflects increasing exposure to digital assets through both customer activity and bank-led virtual currency initiatives.

The department first issued guidance in April 2022 requiring licensed virtual currency firms to employ blockchain analytics to trace transactions and assess risk. It later expanded oversight in…

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