New York Financial Services Authority Issues Advertising Guidelines for Crypto Entities

The New York State Financial Services Authority has released new guidelines requiring licensed crypto entities to avoid misleading or deceptive content in their advertising and marketing. Acting Superintendent Kaitlin Asrow stated that the guidelines aim to protect New York residents and ensure that advertising practices in the virtual currency sector are clear, comprehensive, and accessible. The guidelines apply to virtual currency entities licensed by the authority, mandating them to establish and implement policies and procedures for advertising and marketing materials to ensure content accuracy, clear disclosures, and governance and review processes. Relevant entities must update their policies by May 10, 2027, and review them at least annually, retaining records for regulatory inspection. The guidelines emphasize the fairness of reviewing marketing claims, ensuring that there is evidence to support and verify them, and avoiding exaggeration or false statements. Customer disclosures must be clearly highlighted, easy to understand, and clearly identify the entities providing products, services, or activities. Additionally, the guidelines require the establishment of governance review processes for advertising and marketing materials, appointing responsible individuals, and conducting due diligence on third-party promoters, promptly addressing any improper use of their names or brands by others.