NY Regulator Urges Blockchain Analytics for Banks

• Lyla Velez
• September 17, 2025
• Policy
• 0 Comments

Adrienne A. Harris of the New York State Department of Financial Services has called on state-regulated banks to incorporate blockchain analytics tools to enhance oversight and deter illicit activities as they delve further into crypto services.

As New York enforces blockchain analytics in banks, the initiative signals an enhanced compliance framework amidst growing crypto adoption. Banks now face the challenge of integrating advanced monitoring systems to protect consumers and maintain market integrity.

New guidance

Issued by Superintendent Adrienne A. Harris compels New York’s banking organizations to adopt blockchain solutions to monitor crypto activities. The directive extends DFS’s established standards to include tools for enhanced oversight.

Adrienne A. Harris emphasizes the need for compliance and risk mitigation as banks expand into virtual currencies. The DFS guidance targets key assets like Bitcoin and Ethereum, underscoring a technology-driven compliance approach.

“As traditional banking institutions expand into virtual currency activities, their compliance functions must adapt, onboarding new tools and technologies to mitigate new and different risks.” — Adrienne A. Harris, Superintendent, New York State Department of Financial Services (DFS)

Bitcoin and Ethereum potentially see increased scrutiny, affecting associated financial transactions. The regulatory emphasis is expected to enhance transparency and safeguard against illegal activities within New York’s banking sector.

Banks face potential increased compliance costs as they integrate blockchain analytics under DFS guidelines outlined in the DFS industry letter on blockchain technology utilization. These changes may prompt a reevaluation of crypto services offered by financial institutions, affecting operational dynamics within the industry.

The DFS’s decision to enhance regulatory oversight with blockchain analytics aligns with historical trends observed under the BitLicense regime, indicating a continued trajectory towards stringent digital asset monitoring.