The New York State Department of Financial Services this week announced it has enhanced its ability to detect fraud and other illegal activity among New York State-regulated entities engaged in virtual currency activity.

The new enhancements will provide DFS with additional capabilities to detect potential insider trading, market manipulation and front-running activity associated with Department-regulated entities’ and applicants’ exposure or potential exposure to “listed virtual currency wallet addresses,” according to a statement from Adrienne Harris, DFS superintendent.

“This is a significant step in our supervision of the virtual currency industry as it continues to quickly transform and mature,” Harris said. “These tools will help us combat financial crime and fraud, hold regulated entities accountable, and further strengthen our national leadership in virtual currency supervision.”