The New York State Department of Financial Services (DFS) has stepped up efforts to detect fraud and other illegal activities among entities engaged in cryptocurrencies and other virtual currencies, as a government clampdown on the sector widens.
As per a Feb 21 announcement, the latest efforts saw new tools aimed at detecting activities such as Insider trading and market manipulation perpetrated by New York-regulated virtual currency service providers introduced.
“The new enhancements will provide the Department with additional capabilities to detect potential insider trading, market manipulation, and front-running activity associated with Department-regulated entities and applicants’ exposure or potential exposure to listed virtual currency wallet addresses,” read the announcement.
Commenting in a statement, DFS Superintendent Adrienne A. Harris described the new tools as a significant step in the unit’s supervision of the virtual currency industry noting that it would also help them in keeping pace with the fast-evolving industry.
(By Newton Gitonga)
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