The New York State Department of Financial Services issued formal guidance on November 12, 2026, detailing stricter expectations for advertising and marketing by licensed virtual currency entities. Acting Superintendent Kaitlin Asrow outlined requirements that make firms directly responsible for the accuracy of promotional content, the conduct of influencers and other third-party promoters, and the detection of unauthorized use of their brands.

The guidance applies to all virtual currency entities licensed under the BitLicense regime or chartered as limited-purpose trust companies authorized to conduct virtual currency business activity. Firms must update their advertising and marketing policies and procedures by May 10, 2027. Those policies must then be reviewed and approved at least annually by the board of directors or a designated subcommittee and kept available for departmental examination beginning May 12, 2027.

Core Requirements for Marketing Materials

Licensed firms must ensure that all advertising and marketing materials present a fair, evidence-based portrayal of products, services, and activities. Claims must be verifiable. Materials may not contain unsubstantiated or exaggerated statements, create false impressions of competitiveness by omitting material costs, misrepresent performance results, or imply that state licensure constitutes an endorsement of any specific token, transaction, or return.

Disclosures must be clear, conspicuous, and easy for a general audience to understand. The licensed entity providing the product or service must be plainly identified. When benefits are discussed, risks must receive balanced treatment. Testimonials must note that results may not be representative and must disclose any compensation provided for the endorsement. Disclosures may not be buried behind additional clicks, relegated to the end of long-form content, or minimized through design choices such as size, color, or placement.

Accountability for Third Parties and Brand Misuse

Firms are required to implement formal due-diligence processes for selecting and retaining third-party promoters, including influencers. They must also monitor those promoters’ activities on an ongoing basis to confirm compliance with the firm’s own policies and all applicable laws. In parallel, entities must establish procedures to detect and promptly address fraudulent or wrongful use of their names and brands, such as impersonation accounts and unauthorized promotional schemes.

Governance structures must assign clear roles and responsibilities for the creation, review, and approval of marketing materials. Secondary review is expected to confirm factual accuracy and regulatory compliance. Firms must retain supporting evidence for all factual claims and maintain records of material approvals in accordance with existing record-keeping rules.

Context of Rising Consumer Harm

The guidance builds on the longstanding prohibition against false or misleading advertising contained in 23 NYCRR § 200.18, which has been in force since 2015. Regulators noted that compliance has remained inconsistent. Broader data on consumer losses provided additional impetus. Federal Trade Commission figures showed Americans lost $3.5 billion to imposter fraud in 2025, with roughly $1 billion attributed to scammers posing as businesses or banks and more than $2.1 billion linked to social-media platforms. Law-enforcement reports have also documented a rise in schemes in which fraudsters impersonate cryptocurrency exchange representatives to obtain account credentials.

The Department will assess the effectiveness of firms’ policies and procedures through routine examinations and ongoing supervisory monitoring. The guidance does not create new prohibitions; it clarifies how existing requirements should be implemented in day-to-day operations across all channels, including social media, websites, podcasts, and other formats.

Licensed virtual currency entities now face a defined timeline to formalize internal controls that extend accountability beyond their own staff to the broader ecosystem of promoters and potential impersonators operating under their brands.