New York financial regulators require banks to adopt Blockchain analysis technology to combat illegal activities.

[New York Financial Regulator Requires Banks to Adopt Blockchain Analysis Technology to Combat Illegal Activities] The New York State Department of Financial Services ( NYDFS ) issued guidance on Wednesday requiring banks to adopt blockchain analysis technology to combat illegal activities. NYDFS Superintendent Adrienne Harris stated that as traditional banking institutions expand into virtual money businesses, their compliance functions must adapt to the new situation by introducing new tools and technologies to drop new risks. The guidance particularly emphasizes the importance of using blockchain analysis tools in areas such as customer wallet risk screening and digital asset product risk assessment. This requirement aims to prevent illegal activities such as money laundering, terrorist financing, and sanctions evasion.