Financial regulators in New York have started going over the operations of digital currency companies in the state.

The inspections are part of the New York State Department of Financial Services (NYDFS) digital currency licensing regime. If you recall, New York started requiring virtual currency companies in the state in June 2015—shortly after the collapse of Japan-based Mt. Gox—to apply for a BitLicense before offering services related to digital currency, including holding customer funds and exchanging virtual money for dollars and other regular currencies.

In its recent annual report, the NYDFS stressed the importance of continuous oversight in the industry to keep up with the “speed of transactions” enabled by the blockchain technology. As such, the finance department revealed that it has begun inspecting the operations of digital currency start-ups, which “are subject to periodic examinations by DFS.”

“These technologies create risks to the extent that existing regulatory requirements are bypassed, or regulatory requirements do not keep up with the speed of transactions,” the NYDFS said, noting that “Easier facilitation of payments and anonymous movements of funds can be dangerous without the compliance and oversight designed to safeguard consumers, and to prevent money laundering and funding illegal activities.”