BitFlyer USA Fined $1.2M by NYDFS for Not Meeting Cybersecurity Requirements

The crypto exchange has proposed a plan to make it compliant with the state's cybersecurity regulations by the end of the year.

AccessTimeIconMay 3, 2023 at 5:43 a.m. UTC
Updated May 3, 2023 at 2:19 p.m. UTC

Crypto exchange bitFlyer USA was fined $1.2 million by New York State Department of Financial Services (NYDFS) for failing to meet the state's cybersecurity requirement, the regulator said on Wednesday.

The financial regulator said bitFlyer USA failed to meet the state's cybersecurity regulation, despite having a license to operate in New York.

However, NYDFS acknowledged bitFlyer USA's efforts to step up its cybersecurity. The exchange presented the regulator with a remediation plan, which aims to make bitFlyer USA compliant with the states cybersecurity laws by the end of the year.

BitFlyer is the latest in a series of crypto companies that have been been fined by New York's financial regulator for various violations. In January, Coinbase (COIN) paid $50 million to settle charges that it let users open accounts without having conducted sufficient background checks, while Robinhood Markets' (HOOD) crypto division paid $30 million last year for anti-money laundering and cybersecurity violations.

Edited by Parikshit Mishra.


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Parikshit Mishra

Parikshit Mishra is CoinDesk's Deputy Managing Editor responsible for breaking news coverage. He does not have any crypto holdings.