Virtual Currency Manager (Director Financial Services Programs 1, SG-31)

About the Role

The New York State Department of Financial Services seeks to build an equitable, transparent, and resilient financial system that benefits individuals and supports business. Through engagement, data-driven regulation and policy, and operational excellence, the Department and its employees are responsible for empowering consumers and protecting them from financial harm; ensuring the health of the entities we regulate; driving economic growth in New York through responsible innovation; and preserving the stability of the global financial system.

The Department of Financial Services (DFS) is seeking candidates for the position of Virtual Currency Manager in the Virtual Currency Unit within the Research and Innovation Division. The Virtual Currency Manager serves as a commissioned examiner for regulated Virtual Currency entities, including companies holding licenses to engage in virtual currency business activities (“BitLicenses”). The successful candidate must be available to travel within and outside of New York State.

Responsibilities

• Conducts ongoing, risk-based examination and monitoring activities, including desk-based and onsite exams, cadence meetings, and ad hoc supervisory engagements to ensure DFS-regulated Virtual Currency entities comply with relevant laws, regulations, guidance, and supervisory expectations.
• Reviews Licensees’ coin listing procedures, anti-fraud and market-manipulation, BSA/AML, governance, compliance, risk management, and related policies and procedures.
• Leads aspects of the examination and monitoring process and may supervise the work of colleagues in the Virtual Currency Unit.
• Reviews prior examination reports and periodic reports submitted by institutions to identify problem areas, assess financial condition, evaluate management, and plan examination activities.
• Meets with Licensees’ management to discuss examination scope, findings, request information, and maintain an understanding of the institution's operations and business scale.
• Reviews examination report schedules and work papers prepared by other examiners to ensure adherence to sound financial practices and legal requirements.
• Edits analyses of others and prepares comprehensive field examination reports, including findings, problem areas, and management responses.
• Discusses findings with management and obtains their responses to operational comments.
• Stays updated on laws, regulations, policies, and examination procedures relevant to the Virtual Currency Unit, including serving as a DFS policy lead as required.
• Leads and supports the development or enhancement of internal policies and procedures related to BitLicense examinations and monitoring processes, such as examination manuals and best practices.
• Remains current on best practices in the examination and monitoring of financial institutions, including blockchain monitoring, blockchain analytics, transaction sampling, validation of transaction monitoring and sanctions screening systems, verification of virtual currency holdings, validation of stablecoin backing assets, auditing of coin listings, and anti-fraud and market-manipulation policies.
• Leads and supports special projects and license application reviews.
• Communicates with and presents to senior and executive management, both orally and in written memoranda, regarding analyses and recommended DFS actions on issues encountered.
• Supports the Virtual Currency Unit’s ongoing supervisory relationships with BitLicense and limited purpose trust charter applicants, licensees, and key industry and public stakeholders.
• Contributes to strategy and policy initiatives relevant to the Virtual Currency Unit.
• Assists in developing and maintaining an effective annual supervisory plan.
• Coaches and mentors team members and contributes to ongoing training plans.

Travel may be required up to 25%.

Requirements

Candidates must meet the following minimum qualifications to be eligible for appointment:

• Eleven years of financial services experience with either a regulated entity having a regional, national, and/or international presence or a governmental regulatory entity. This experience must include practical and technical knowledge of State, federal, and/or international financial services laws, rules, and regulations.
• Two years of the experience must have been at a managerial level.

Substitutions: An associate degree may substitute for two years of experience; a bachelor’s degree may substitute for four years; a master’s degree may substitute for five years; and a doctorate may substitute for six years.

Acceptable Degrees: accounting, actuarial sciences, auditing, banking, business, business administration, business and technology, commerce, computer information systems, computer science, consumer sciences, criminal justice, cyber security, econometrics, economics, finance, financial administration, health, health administration, information systems, information systems engineering, information technology, internal controls, international or public affairs, law, market analysis, mathematics, public administration, public policy, risk management, statistics, taxation, or technology.

Qualifying Professional Financial Services Experience: Includes, but is not limited to, experience gained with public accounting/auditing firms; cyber security and intrusion detection/mitigation firms; law firms, lobbying firms, and consulting firms; risk assessment, asset hedging, and loss control firms; commodities markets, virtual currency, and credit scoring; currency markets/exchanges, bond markets, stock markets, and money markets; hedge funds, mutual funds, investment houses, and rating firms; business valuation, stock valuation, and cash management; wealth management, wealth portfolio, and trust companies; firms involved in corporate mergers, acquisitions, management, and accounting; mortgage-backed securities, swaps, and swap valuation; underwriting, policyholder services, and claims services; workers’ compensation, income protection plans, gap insurance, and liability coverage; property/casualty insurance, life insurance, and health insurance; retirement/savings plans such as social security, pension plans, Roth IRA, 527 Plans, 401(k) Plans, 403(b) Plans, annuities, and related income tax savings vehicles; fair lending practices and urban analysis; public finance/financial management and taxation, central bank, tax, tariff, and trade; and monetary policy, monetary reform, and investment theory.

Preferred Qualifications

Subject-matter expertise and/or experience in one or more of the following are preferred but not required:

• Virtual currency
• BSA/AML, OFAC, and related laws, regulations, and best practices
• Cybersecurity laws, regulations, and issues
• Internal controls/governance
• Financial analysis
• Accounting
• Use of blockchain analytics software

Pay

The starting salary for this position is $131,256 with periodic increases up to $159,784. Positions located within the New York City metropolitan area, as well as Suffolk, Nassau, Rockland, and Westchester Counties, are also eligible to receive an additional $4,000 annual downstate adjustment.