bitFlyer USA Ordered to Pay a $1.2M Fine for Violating New York State Cybersecurity Regulations

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The NYDFS has imposed a fine of $1.2 million on cryptocurrency exchange bitFlyer USA for not complying with New York state cybersecurity regulations.

Despite having a license in the state, the exchange failed to meet the requirements.

Nevertheless, the NYDFS recognized bitFlyer USA’s efforts to enhance its cybersecurity, as the exchange has submitted a remedial action plan to be implemented by the end of the year.

Additionally, in February, the NYDFS initiated an investigation of infrastructure company Paxos, which issues the stablecoins Pax Dollar and Binance USD.

Consequently, Paxos has stopped issuing BUSD, while still supporting redemption and conversion operations until at least February 2024.