Wolters Kluwer with NYDIG launches Bitcoin Risk Assessment

By Edlyn Cardoza

In collaboration with NYDIG, a leading Bitcoin company, Wolters Kluwer Compliance Solutions has launched Bitcoin Risk Assessment – NYDIG Clients to provide regulatory assessments for financial institutions looking to offer their customers access to Bitcoin services provided by NYDIG.

The Risk Assessment evaluates a financial institution’s control environment related to its participation in the NYDIG Bitcoin platform. As part of the assessment, clients receive a report on how the findings fit within a range of established, relevant controls, providing a clearer picture of their Bitcoin activities. This helps the financial institution understand if its current controls will fulfil the relevant regulatory standards for offering Bitcoin products and services.

“Recent federal regulatory messaging and guidance has emphasised that financial institutions pursuing Bitcoin-related investments for their customers must fully understand and control for potential risks,” explained Stevie Conlon, Vice President, Tax and Regulatory Counsel for Wolters Kluwer Compliance Solutions. “A targeted assessment allows a financial institution to appropriately tailor and document its controls.”

“Federal regulators are sending a clear message,” said Steve Meirink, Executive Vice President and General Manager for Wolters Kluwer Compliance Solutions. “Financial institutions considering the potential rewards associated with Bitcoin products need to have a clear understanding of what they want to provide and how they’ll provide it. We are pleased to collaborate with NYDIG to offer participating financial institutions these assessments, which will help organisations begin their journey into offering Bitcoin to their customers.”

Consumers are increasingly expecting their banks and credit unions to offer Bitcoin-related products and services. According to a 2021 Bitcoin & Banking survey commissioned by NYDIG, 71% of Bitcoin holders said they would switch their primary bank to one that offered Bitcoin-related products alongside traditional banking services.

“NYDIG’s research clearly shows that consumers expect their banks and credit unions to provide access to Bitcoin,” said Patrick Sells, NYDIG’s Chief Innovation Officer. “With Wolters Kluwer’s expertise and NYDIG’s best-in-class platform, banks can confidently provide the Bitcoin products clients want in a safe and compliant manner.”

Wolters Kluwer is an NYDIG Preferred Consultant for risk assessments conducted by financial institutions related to the NYDIG platform. In 2021, the two companies announced a strategic arrangement in which Wolters Kluwer agreed to provide regulatory compliance solutions and services—such as Wolters Kluwer Bitcoin Deposit Disclosure Program-NYDIG Accounts for interested financial institutions that want to gain added confidence that their account disclosures used with NYDIG are compliant and meet regulatory requirements.

Wolters Kluwer Compliance Solutions is a market leader and trusted provider of risk management and regulatory compliance solutions and services to U.S. insurers, banks, credit unions, and securities firms. The business, which sits within Wolters Kluwer’s Governance, Risk & Compliance (GRC) division, helps these financial institutions efficiently manage risk and regulatory compliance obligations and gain the insights needed to focus on better serving their customers and growing their business.

Wolters Kluwer’s GRC division provides an array of expert solutions to help financial institutions manage regulatory and risk obligations. Wolters Kluwer Compliance Solutions’ eOriginal® suite of purpose-built, digital lending solutions, for example, allows lenders to digitise their transactions and features electronic signatures, collateral authentication and an electronic vault. Compliance Solutions’ OneSumX® for Regulatory Change Management tracks regulatory changes and organises them to create structured, value-added content through a single data feed paired with an easy-to-use software solution. Meanwhile, Wolters Kluwer Finance, Risk & Regulatory Reporting (FRR) is a global market leader in the provision of integrated regulatory compliance and reporting solutions. The division’s legal solutions businesses are Wolters Kluwer CT Corporation and Wolters Kluwer ELM Solutions.