DFS Guidance on Financial Sector Impact of Global Conflicts

The New York Department of Financial Services issued an industry letter on June 23, 2025 providing guidance on the impact of ongoing global conflicts on the financial sector. The guidance specifically addresses virtual currency companies and other entities regulated by DFS, offering risk management considerations related to geopolitical instability. DFS expects regulated entities to evaluate their exposure to global conflict risks and maintain appropriate controls and contingency measures.

For affected virtual currency firms and financial institutions operating under DFS supervision, this guidance signals increased regulatory attention to geopolitical risk factors in compliance and risk management programs. Firms should review existing risk assessments to ensure global conflict scenarios are adequately addressed and document any identified exposures.