The New York Department of Financial Services (NYDFS) has released updated regulatory guidance aimed at tightening control over advertising and influencer marketing by licensed digital asset companies operating in the state.
Key requirements for crypto firms
The new rules require licensed virtual currency entities (VCEs) to establish clear procedures for creating, reviewing, and approving all marketing materials. Every advertisement must clearly identify the licensed company responsible for its content, and companies must be able to substantiate any claims made in ads.
Kaitlin Asrow, Acting Superintendent at NYDFS, emphasized that crypto firms will now be held accountable for the actions of both influencers they contract and individuals impersonating their brands. The compliance deadline for these new requirements is May 10, 2027.
VCEs are also required to conduct background checks on third-party marketing partners and to actively monitor for unauthorized use of their brand by impostors. NYDFS will review these internal policies and procedures during routine compliance examinations, and companies must refresh their policies every year.
Ads must clearly disclose which licensed entity is promoting the product, and licensees must back up all claims with solid evidence. Firms are responsible for policing both legitimate influencers and those misusing their brands.
Since 2015, New York regulations have mandated that crypto firms include a “licensed by NYDFS” disclosure in advertisements, informing customers that the company is under regulatory oversight. However, regulators now stress that this license should not be misrepresented as state endorsement of any particular token, transaction, or investment return.
NYDFS cautions that advertising must never suggest that state licensure implies state approval or guarantee of specific cryptocurrencies or services. Firms are required to ensure all language remains compliant, eliminating misleading implications from their messaging.
Background: Rising risks from crypto ads and impostors
Regulators have intensified their focus due to increasing losses linked to digital asset scams. The US Federal Trade Commission reported that Americans lost $3.5 billion to imposter fraud in 2025, with scams involving individuals posing as businesses or banks accounting for approximately $1 billion of those damages. Social media platforms were associated with over $2.1 billion in reported losses.
In August 2024, the FBI’s Internet Crime Complaint Center highlighted a surge in schemes where fraudsters impersonated crypto exchange representatives. These impostors targeted victims with fake security alerts, ultimately obtaining account credentials and stealing funds.
Although New York began prohibiting misleading crypto advertising under regulation 23 NYCRR § 200.18 in 2015, the NYDFS stated that compliance remains inconsistent. The department aims for the newly detailed guidance to provide clarity on how firms should comply with these longstanding requirements on a daily basis.
A January 2024 review by the Financial Industry Regulatory Authority (FINRA) found that about 70% of the 500 retail crypto communications examined may have violated fair disclosure standards, including by claiming crypto functions like cash or misrepresenting available investor protections.
Authorities across global markets have increased scrutiny on digital asset promoters and finance influencers, with European regulators also raising oversight of crypto advertising practices.
Mini dictionary: NYDFS (New York Department of Financial Services) is the primary financial regulatory authority in New York State, overseeing virtual currency firms via licensing and compliance requirements.
| Year | US Scam Losses | Losses via Social Media | Imposter Scam Losses |
|---|---|---|---|
| 2025 | $3.5 billion | $2.1 billion | $1 billion |
