In 2017, BitFlyer USA, a subsidiary of BitFlyer Holdings, received a license from the New York regulator that allows the exchange to provide local traders with cryptocurrency trading and custody services. The license was obtained in accordance with the Regulation on Virtual Currencies and the Regulation on Cyber Security. However, the NYDFS conducted an investigation into BitFlyer’s activities, stating that the exchange does not fully comply with these rules.
The NYDFS claims that BitFlyer’s US division has not conducted a comprehensive risk assessment and that its cybersecurity program does not fully protect the exchange’s electronic systems from unauthorized use. The agency required the exchange to address identified deficiencies and improve its cybersecurity program by December 31, 2023.
Note that in 2020, the NYDFS expressed its readiness to simplify the acquisition of a BitLicense for companies working with digital assets. However, the agency maintains a strict stance on the regulation of the cryptocurrency market, applying tough measures against crypto companies.
In February, the NYDFS became interested in the activities of Paxos Trust. The regulator later demanded that it stop issuing new BUSD stablecoins for fear that they could be unregistered securities.
Source: Bits
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