NYDFS sets fresh advertising standards for crypto firms
New York’s top financial regulator issued fresh guidance outlining expectations for cryptocurrency firms to establish policies and procedures governing advertising and marketing, including measures to prevent false or misleading content, by next year.On Thursday, the New York State Department of Financial Services issued the guidance, outlining its expectations for "accurate content, clear disclosures, and an established governance and review process," with firms expected to implement the measures by May 10, 2027."For more than a decade, DFS has set the global standard for virtual currency oversight and consumer protection," said Department of Financial Services Acting Superintendent Kaitlin Asrow in the statement. "Today’s guidance reinforces our commitment to protecting New Yorkers and ensures advertising and marketing practices in the virtual currency space are clear, comprehensive, and accessible."NYDFS has long been a leading regulator of the crypto industry, launching its landmark BitLicense regime in 2015 and helping shape the broader regulatory approach to digital assets in the U.S. Other regulators globally have also turned their attention to advertisements, including in the UK.The NY regulator said virtual currency entities' advertising should not be deceptive, should not include any exaggerated claims or say that something has no fee trading while omitting other costs. The entities also need to file disclosures on if people making testimonials were compensated, the regulator said.Entities also need to have a governance and review structure that includes clear roles and responsibilities for advertising and marketing, the regulator added.