BitFlyer USA, a cryptocurrency exchange, has been slapped with a $1.2 million fine by the New York State Department of Financial Services (NYDFS) for failing to comply with the state’s cybersecurity regulations.
The NYDFS stated that the exchange had a license to operate in New York, but it failed to meet the state’s cybersecurity standards.
The NYDFS acknowledged that bitFlyer USA has taken measures to improve its cybersecurity and presented a remediation plan to the regulator. The plan aims to make bitFlyer USA compliant with the state’s cybersecurity laws by the end of the year.
This latest development adds bitFlyer USA to a growing list of cryptocurrency companies that have been fined by New York’s financial regulator for various violations.
Coinbase, the popular cryptocurrency exchange, paid $50 million in January to settle charges that it allowed users to open accounts without proper background checks. Robinhood’s crypto division also paid $30 million last year for anti-money laundering and cybersecurity violations.
The NYDFS has been very active in regulating the cryptocurrency industry, and its actions have sent a strong message to the industry that compliance is a must.
The regulator has been keen to ensure that cryptocurrency companies comply with cybersecurity standards and protect the interests of their customers.
Cryptocurrency exchanges, in particular, are a target for regulators as they are vulnerable to hacking attacks and other cyber threats.
As such, they are expected to have robust cybersecurity measures in place to protect their systems and the personal information of their customers.
The fine imposed on bitFlyer USA is a clear indication that regulators are taking cybersecurity seriously and will not hesitate to impose penalties on companies that fail to meet the required standards.
In this case, bitFlyer USA has been given the opportunity to rectify its shortcomings and comply with the state’s cybersecurity laws by the end of the year.