- This decision was issued by the American regulator NYDFS
- The reason is a violation of cybersecurity rules
- The crypto exchange promised to carry out “work on the bugs”
Cryptocurrency exchange BitFlyer USA received fine from the New York City Department of Financial Services (NYDFS). They will pay $1.2 million for non-compliance with cybersecurity regulations.
Note that the BitFlyer brand comes from Japan. But since 2018, they have been operating in the US and are required to comply with the laws in each state. New York has its own requirements for cyber security and in case of violations, local authorities can impose a fine.
The financial regulator said that BitFlyer USA does not meet the state’s cybersecurity requirements. But in the conclusion, they acknowledged the company’s commitment to fixing bugs and beefing up its cybersecurity.
The crypto-exchange has already filed a “work on the bugs” plan with the commission. The purpose of the document is to adjust the activities of BitFlyer USA in accordance with state laws.
BitFlyer has become one of the latest “victims” in a series of sanctions from the NYDFS. In January, the regulator obtained a $50 million fine from Coinbase. The crypto exchange will pay it for allowing customers to register an account without providing personal data. Robinhood paid slightly less – $30 million. This was a punishment for violating AML regulations and cybersecurity rules. Robinhood will pay another $10.2 million due to technical issues that were recorded on the platform in 2020.