1. PixelPlaygroundHome
  2. Blockchain Briefs

New York State Department of Financial Services Intensifies Measures against Virtual Currency Fraud

• Blockchain Briefs • 133 views

On February 22, the New York State Department of Financial Services issued an official announcement saying that the department has improved its ability to dete…

New York State Department of Financial Services Intensifies Measures against Virtual Currency Fraud

On February 22, the New York State Department of Financial Services issued an official announcement saying that the department has improved its ability to detect fraud and other illegal activities in entities engaged in virtual currency activities under the supervision of the State of New York through new insider trading and market manipulation risk monitoring tools.

New York State Department of Financial Services: is using new monitoring tools to monitor illegal activities of encryption

Interpretation of the news:


The New York State Department of Financial Services (NYDFS) has released an official announcement on February 22 that highlights its strengthening ability to detect fraud and other illegal activities in entities that engage in virtual currency activities. This indicates a heightened scrutiny by the agency towards crypto assets, which have largely operated outside the regulatory purview of government agencies.

The department’s announcement indicates that NYDFS has implemented new measures to detect insider trading and market manipulation risks, which could potentially harm investors and undermine market integrity. These new monitoring tools are aimed at ensuring that entities involved in virtual currency activities operate in compliance with regulatory guidelines under the supervision of NYDFS.

Insider trading is a practice where individuals with privileged information or access take advantage of this information for financial gain. In the context of virtual currency, insider trading could involve individuals with access to information about the market or the value of a particular crypto asset, which they use to trade for profit while keeping it away from the public. The use of monitoring tools to detect such practices could be critical in promoting transparency and fair practices.

Market manipulation, on the other hand, refers to practices like wash trading, pump and dumps, and painting the tape, where individuals artificially inflate or deflate the price of a particular asset to gain an unfair advantage over other investors. These practices often harm retail investors, leading to massive losses and undermine the credibility of the asset in question.

The NYDFS announcement, therefore, indicates that the agency is taking a proactive approach towards ensuring the integrity of the virtual currency market by implementing measures to curb insider trading and market manipulation. This is significant, given that the crypto market is largely unregulated, and this exposes investors to various risks, including fraud and other illegal activities.

In conclusion, NYDFS’s announcement signifies its commitment to promote ethical business practices in the virtual currency market. The integration of new monitoring tools to detect insider trading and market manipulation risks is a welcome development that could promote transparency and protect investors from fraudulent practices.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/2287/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 02/22/2023 02:12
Next 02/22/2023 02:31

Recommended articles