The New York State Department of Financial Services on Wednesday directed banks to use blockchain analysis to combat illicit activity, citing increased interest in digital assets. Its latest guidance follows a 2022 statement encouraging companies registered in the state to use blockchain technology. New York State Department of Financial Services Superintendent Adrienne Harris said in a statement: "As traditional banking institutions expand into virtual currency activities, their compliance functions must adapt and adopt new tools and techniques to mitigate new and different risks."

Earlier news, the New York State Department of Financial Services (NYDFS) issued a BitLicense and money transmission license to Bullish, an encryption market infrastructure and information services company. (The Block)