The Blockchain Monitor

Home | The Blockchain Monitor

On May 1, 2023, the New York State Department of Financial Services (DFS or Department) issued a <a href="https://e.bakerlaw.com/collect/click.aspx?u=TmtMMXBZa0NzKzBqeE5GcXpYWVdQVVBPS01qRHpkOHVtM011ZmxSRVhRc1dJQ0p0dFFwMi85eEdrdGVUNmcvQWwwMWxncXNHOUs3dGxORHp6ZmJXUis0M2U2bDcvbFNpQ2VZcm9GMjN6ck42OEVCa3Z1Q3BMb1dEQlhoT1NoQ0hHKy9PWkNoV0VBQ0xNR3dGc3ZaK3BORGlrQmwvc3d6Ng==&amp;rh=ff00ab95f0bdb413569303687144bfba3a70f54e" target="_blank" rel="noreferrer noopener">consent order</a> (Consent Order), imposing a $1.2 million fine on bitFlyer USA, a cryptocurrency trading platform and custodial wallet service provider.  The Consent Order described various alleged failures by bitFlyer USA to establish and maintain an effective cybersecurity program, as required by the DFS’s Virtual Currency and Cybersecurity Regulations. This marks the third DFS consent order involving a crypto market actor.  While the previous two focused on alleged anti-money laundering failures, the bitFlyer USA consent order is significant because it focused exclusively on cybersecurity violations, which remain a DFS priority. 

core/paragraph

Read the full <a href="https://www.bakerlaw.com/alerts/nys-dfs-focuses-on-cybersecurity-violations-and-increasing-crypto-resources">alert</a>.

NYS DFS Focuses on Cybersecurity Violations and Increasing Crypto Resources