The New York State Department of Financial Services has bolstered its ability to identify illegal activity among virtual currency-focused entities supervised by the department, according to a Tuesday release. The regulator will start using new risk monitoring tools to detect insider trading, market manipulation and front-running activity within the virtual currency industry. “These tools will help us combat financial crime and fraud, hold regulated entities accountable, and further strengthen our national leadership in virtual currency supervision,” NYDFS Superintendent Adrienne A. Harris said in a statement . The move, building on previous guidance pertaining to wrongful activity, comes as a slew of regulators boost their efforts to crack down on the emerging crypto space, which has dealt with a number of high-profile failures and fraudulent schemes in recent months. Earlier this month, the NYDFS ordered Paxos Trust Company to stop the issuance of new Binance-branded stablecoin BUSD ( BUSD-USD ).
