New York’s financial regulator has released new guidance for virtual currency companies on how they advertise and market their services, setting out standards aimed at accuracy, disclosures, and internal oversight.
The New York State Department of Financial Services said firms are expected to put the measures in place by May 10, 2027. The guidance calls for policies and procedures designed to prevent false or misleading content and to formalize how marketing materials are reviewed and approved.
Regulator sets expectations for crypto marketing
The guidance was issued Thursday by the New York State Department of Financial Services, which oversees virtual currency firms in the state. According to the regulator, companies should maintain advertising and marketing standards that support accurate content, clear disclosures, and an established governance and review process.
Acting Superintendent Kaitlin Asrow said in a statement that DFS has spent more than a decade building its approach to virtual currency oversight and consumer protection. She said the new guidance is intended to reinforce that work by making advertising and marketing practices in the sector clear, comprehensive, and accessible.
Focus on misleading claims and hidden costs
DFS said advertising by virtual currency entities should not be deceptive and should avoid exaggerated claims. The regulator also singled out fee-related promotions, saying firms should not state that there are no trading fees if other costs are left out of the message.
The guidance also addresses endorsements and testimonials. Under the regulator’s expectations, firms need to disclose whether testimonials used in advertising were compensated.
Governance and review become a formal requirement
Beyond the content of individual ads, the department said firms should build a governance and review structure around marketing activity. That framework is expected to include clear roles and responsibilities for advertising and marketing decisions.
The emphasis on internal process suggests DFS wants firms to treat promotional materials as a compliance matter rather than only a branding function. The guidance specifically calls for policies and procedures, not just general principles, to govern how these materials are created and approved.
Implementation timeline and next step
The compliance date set by DFS is May 10, 2027, giving covered firms several months to adopt the required measures. Between now and then, the confirmed next step is for virtual currency entities subject to the department’s oversight to establish the policies, disclosures, and review processes described in the guidance.
The announcement does not introduce additional details beyond those expectations, but it makes clear that New York wants crypto advertising to be backed by documented controls and transparent consumer-facing information.
Source: www.theblock.co