New York financial regulators require banks to adopt blockchain analysis tools to combat illegal activities

ChainCatcher news, according to The Block, the New York State Department of Financial Services (NYDFS) has released new guidelines requiring banks to use blockchain analysis technology to identify and mitigate risks related to money laundering, terrorist financing, and sanctions evasion when screening customer wallets and launching digital asset products.

NYDFS stated that as virtual currency businesses expand, traditional banks need to adopt new tools to address emerging threats and maintain the security of the financial system. On the same day, NYDFS issued a BitLicense and a money transmission license to Bullish.