NYDFS Fines BitFlyer USA $1.2M For Not Meeting Cybersecurity Requirements

TL;DR

• Crypto exchange BitFlyer USA has been fined $1.2 million for failing to meet the New York State’s cybersecurity requirement.

• BitFlyer USA has proposed a plan to make it compliant with the state's cybersecurity regulations in 2023.

BitFlyer To Pay $1.2 Million To New York Regulator

Cryptocurrency exchange BitFlyer USA is set to pay $1.2 million after being fined by the New York State Department of Financial Services (NYDFS) for failing to meet the state's cybersecurity requirement.

According to the regulatory agency, the cryptocurrency exchange failed to meet the state's cybersecurity regulation, despite having a license to operate in New York.

The NYDFS also acknowledged that the cryptocurrency exchange is putting efforts in place to boost its cybersecurity. BitFlyer USA presented the regulatory agency with a redemption plan that seeks to make it compliant with the state’s cybersecurity laws before the end of 2023. 

The New York financial regulator has clamped down on various cryptocurrency companies in recent years. In January, crypto exchange Coinbase paid $50 million to settle charges after it was accused of allowing users open accounts without carrying out sufficient background checks.

In 2022, Robinhood’s crypto division also paid $30 million to the regulator for  anti-money laundering and cybersecurity violations.