The New York State Department of Financial Services (NYDFS)
has fined the
Japanese crypto exchange BitFlyer's U.S. arm, BitFlyer USA, $1.2M.
While explaining the fine, the state's financial regulator cited that the platform does not comply with its cybersecurity regulations.
The state agency has accepted the exchange's commitment to improve cybersecurity on the platform.
- BitFlyer USA has presented a remediation plan, promising it will meet New York's cybersecurity requirements by the end of the year.
- The firm already has a license to operate in New York.
- The NYDFS has issued a license dubbed BitLicense for eight years to let a company run virtual currency activities under regulations in the state.
-
The license and the state's financial regulator have been criticized many times over the years for restrictive measures, long wait times, and high compliance costs.
- Currently, 22 companies in total have BitLicense.
The latest move made BitFlyer USA the latest crypto-related firm fined by NYDFS over the last months after the crypto exchange Coinbase and the financial services company Robinhood's crypto
division.
-
The state regulator also recently
enforced new rules
that would be adopted while assessing crypto companies and force virtual asset firms to adhere to strict guidelines for capitalization, cybersecurity, and anti-
money laundering
(AML) measures.
