BitFlyer USA, a licensed cryptocurrency exchange in New York, has been fined $1.2 million for non-compliance with cybersecurity regulations. The New York State Department of Financial Services (NYDFS) found the exchange failed to maintain a compliant cybersecurity program, but acknowledged its efforts to improve. BitFlyer Holdings, the parent company of BitFlyer USA, was also implicated.

The NYDFS has set a deadline of December 31, 2023, for the exchange to enhance its cybersecurity programs. This penalty highlights the importance of complying with cybersecurity regulations in the crypto industry.