bitFlyer Implements Restrictions to Comply With Travel Rule
- The Japanese exchange has adopted new AML measures in order to comply with the Japanese governments implementation of FATF’s Travel Rule.
- Transaction restrictions will be applied to 21 countries that follow the Travel Rule, though transfers to countries not on the list will still be supported.
Shutterstock
Japan-based crypto exchange bitFlyer has adopted new anti-money laundering (AML) measures in response to the upcoming enforcement of FATF’s Travel Rule in the country, the company said in a press release on 30 May.
Earlier this month, Japan’s cabinet decided to implement stricter AML measures in the country starting 1 June in order to align with standards supported by the G-7, including the Financial Action Task Force’s (FATF) AML regulation known as the Travel Rule. This regulation requires crypto platforms to share customer data during transfers greater than $3,000 in order to combat financial crimes in the crypto industry.
To comply with the Travel Rule, bitFlyer has implemented restrictions for transfers to and from 21 countries and regions that follow the Travel Rule. The exchange noted it will continue to work with platforms that are part of the Travel Rule Universal Solution Technology (TRUST) network, which provides a secure platform for exchanges to manage customer data mandated by the Travel Rule.
Customers who wish to send crypto assets to one of those countries will be further limited to TRUST-compatible crypto assets such as Bitcoin (BTC), Ethereum (ETH), and various ERC-20 tokens. Coincheck is the only other crypto exchange in Japan that is part of the TRUST network, and allowed to interact with bitFlyer, but only using BTC. More options such ETH and ERC-20 tokens will be included in the future, the exchange noted.
Although bitFlyer has introduced restrictions on transactions between exchanges in countries that follow the Travel Rule, transfers to and from countries not on the list — as well as those to private wallets — are still supported in any crypto asset available on the bitFlyer platform.
- The requirement to deposit customer assets into a statutory trust comes as a result of a MAS public consultation from October 2022 focused on reducing risk in crypto trading.
- Singapore’s central bank also restricted crypto firms from facilitating lending and staking to retail customers, though the services are still available to institutional clients.
Monetary Authority of Singapore building. The Straits Times
- There is still no official date for when Binance will re-enter the Japanese market, but Sakura Exchange BitCoin (SEBC) will close doors on 31 May, and reopen as Binance Japan sometime after June.
- Customers in Japan who wished to continue using the exchange under the Binance name will have to undergo new identity verification and KYC checks.
- FTX Japan will resume customer crypto and fiat withdrawals, which will be processed through the Liquid Japan platform, tomorrow at noon local time.
- Users who do not have a Liquid Japan account will first need to create one before they are able to access their crypto assets.