The NYDFS played a key role in the decision by Paxos Trust, a blockchain infrastructure platform, to cease issuing the Binance USD stablecoin
The New York State Department of Financial Services (NYDFS) has declared that it has improved its ability to identify unlawful activities involving digital currency among the organisations it oversees.
These enhancements are intended to enable the agency to stay up-to-date with the industry and take preventive measures in response to developments in the virtual currency market.
The NYDFS issued a brief statement on February 21 announcing its new capabilities for monitoring insider trading and market manipulation risks but did not provide any details about the tools themselves.
The statement stated that the enhancements would enable the department to identify potential instances of insider trading, market manipulation, and front-running related to virtual currency wallet addresses listed by entities and applicants under the department's regulation.
According to Adrienne Harris, the superintendent of NYDFS, the newly developed tools will aid in the fight against financial crime and fraud, ensure that regulated entities are held responsible, and enhance the department's position as a leader in supervising virtual currencies at the national level.