The New York State Department of Financial Services (NYDFS) has revealed that it has started the investigations on digital currency companies.

The NYDFS stated this in its the 2016 Annual Report, in which it said that its Capital Markets/Research Trends Innovation Division has the primary regulatory responsibility for the New York State-based public retirement systems, financial guaranty insurance companies and virtual currency companies.

The department published the final BitLicense rules in June 2015 for virtual currency business activity. This was the result of almost two-year inquiry into the suitable regulatory guidelines for virtual currency firms. The rules contain key consumer protection, anti-money laundering compliance, and cyber security rules tailored for digital currency companies.

Circle Internet Financial became the first company to receive BitLicense from the regulator in September 2015. In addition to Circle, the DFS has granted BitLicense to four other virtual currency companies, which includes Coinbase and Ripple, while Gemini and itBit received banking charters. In 2016, the regulator authorized Gemini Trust Company to offer the trading of Ether on its virtual currency exchange based in New York.

“DFS has begun examinations of these virtual currency companies, which, like other regulated financial services entities, are subject to periodic examinations by DFS”, the DFS said.

The regulator further said that the Capital Markets Division regulates virtual currency companies doing business in New York and continues to process applications for BitLicense.