As traditional banking institutions expand into virtual currencies amid an increasingly favourable regulatory environment, the New York state watchdog has issued guidance making it clear that firms are expected to consider incorporating blockchain analytics as an additional risk-management tool.Such tools could be useful for assessing risk exposure through customer wallet screening and funds verification; holistic monitoring for illicit activity; and weighing the risks associated with crypto products and services, says the NYDFS.“As traditional banking institutions expand into virtual currency activities, their compliance functions must adapt, onboarding new tools and technologies to mitigate new and different risks,” says NYDFS Superintendent Adrienne Harris.