The New York State Department of Financial Services (NYSDFS) recommended that regulated cryptocurrency companies submit a meticulous and thorough action plan in the event of an outbreak of the COVID-19 epidemic no later than in 30 days.
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The actions of the regulator are due to an increase in the number of people infected with coronavirus in New York. The mayor Bill de Blasio, following the ban of state governor Andrew Cuomo on holding public assemblies, introduced an emergency regime.
As conceived by NYSDFS, the plan should take into account employee protection strategies, strengthened cyber threat reduction measures, communication in the event of natural disasters, and procedures to ensure the continuous functioning of critical operations.
The regulator also ordered companies to develop a detailed plan for assessing and monitoring financial risks that might arise if the COVID-19 pandemic intensifies.
Companies should pay particular attention to attempts to conduct fraudulent trading or withdraw funds by hackers who can take advantage of the situation.
The management pointed to the growing likelihood that cryptocurrency companies will have to transfer stored assets from “cold” to “hot” wallets.