The New York State Department of Financial Services has issued new guidance requiring licensed virtual currency entities to take direct responsibility for advertising claims, promotional partners and brand impersonation. The rules were outlined by Acting Superintendent Kaitlin Asrow, and licensed crypto firms have until May 10, 2027 to comply.
Under the updated framework, every licensed firm must be able to substantiate any claim made in an advertisement, clearly identify the licensed company behind each ad, and maintain internal processes for how marketing content is built, reviewed and approved. The guidance reinforces the existing 2015 requirement that advertisements include a "licensed by NYDFS" statement, while clarifying that a state license does not amount to an endorsement of any token, trade or advertised return.
Firms are also required to vet the background of external partners they work with, monitor for misuse of their brand, and review these policies at least annually. The NYDFS said it will examine those policies during compliance checks.
The regulator’s focus follows broader warnings about imposter and promotional fraud. The U.S. Federal Trade Commission reported that Americans lost $3.5 billion to imposter scams in 2025, with about $1 billion tied to scammers posing as businesses and banks. Social media accounted for more than $2.1 billion in losses. In August 2024, the FBI’s Internet Crime Complaint Center warned about scammers pretending to represent crypto exchanges and sending fake security alerts to steal login credentials and drain accounts.
Regulators have also highlighted industry-wide advertising issues. FINRA said in a January 2024 report that roughly 70% of about 500 retail crypto communications it reviewed may have broken fair-and-balanced rules, including false claims that crypto works like cash and incorrect statements about investor protections.
