BitFlyer USA fined $1.2 million

The New York State Department of Financial Services (NYDFS) оштрафовал the cryptocurrency exchange bitFlyer USA $1.2 million for failing to comply with the state’s cybersecurity requirements.

The regulator identified the violation despite the platform holding a license in New York.

At the same time, NYDFS acknowledged bitFlyer USA’s efforts to bolster cybersecurity. The exchange presented the regulator with a remediation plan aimed at bringing the company into compliance with the state’s cybersecurity laws by the end of the year.

In February, NYDFS initiated an investigation into the infrastructure company Paxos, which is the issuer of the Pax Dollar and Binance USD stablecoins. The regulator ordered the cessation of the latter’s issuance.

Paxos halted the issuance of BUSD in accordance with regulator directives, but will continue to support buyback and conversion operations at least until February 2024.