Matthew Homer of the New York State Department of Financial Services asked firms related to virtual currency to establish proper contingency plans for coronavirus.
In the letter, all the major things have been included that are must for preparations. There should be proper protection strategies for the employees. Accurate functioning should be there to reduce cyber risk. The plans need to be submitted within the next 30 days by all the firms.
It has been highlighted in the letter that hackers might try to launch some cyber-attacks due to the outbreak. All the firms are directed to take ample security measures in order to prevent such attacks. There is a need to keep an eye on “illicit deals” and all the “withdrawals”.
The regulator has said that firms need to develop proper communication plans. A forum needs to be established to communicate with the public including the customers and the counterparties.
All the important or urgent news and information should be conveyed through this communication plan.
It has also been mentioned by the regulator that how the outbreak could affect the organisations.
There might be a decline in revenues, changes in the interest rate, decreased value of different investments and assets and a lot more. There is a need for an accurate plan to evaluate and observe the complete financial risk that might be there due to COVID-19.
By the time the letter was issued, there were already many circumstances that were leading towards emergency in New York.
Andrew Cuomo, the governor of New York has imposed restrictions on mass gatherings throughout the city. Simultaneously, a state of emergency has been declared by the mayor of the city, Bill de Blasio. In recent press conferences, he has also warned that the outbreak is not for a short period of time as it might be easily a crisis for six months or even more than that.
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