BitFlyer imposes crypto deposit limits to comply with Travel Rule

Cryptocurrency exchanges in Japan are getting ready for the implementation of the Financial Action Task Force’s Anti-Money Laundering (AML) regulations, also known as the Travel Rule.

On May 30, bitFlyer – a major Japanese crypto exchange – announced that it will be adopting measures to comply with the stricter AML standards targeting crypto transactions in Japan.

BitFlyer has set up restrictions on deposits and transfers, disabling transactions to and from exchanges that are not a part of the Travel Rule Universal Solution Technology (Trust) network. Trust is a platform that has been adopted by major industry firms such as blockchain and Crypto.com, which allows exchanges to securely manage customer data that is legally required by the Travel Rule.

BitFlyer’s latest restrictions apply to 21 countries and regions that require information notification based on the Travel Rule. The announcement lists the countries and regions in a table, including jurisdictions such as the United States, Canada, Hong Kong, and Singapore, among others.

Restrictions are also in place on the types of crypto assets supported by Trust. BitFlyer currently facilitates Trust transactions for cryptocurrencies like Bitcoin (BTC) and Ether (ETH), as well as ERC-20 assets such as Shiba Inu (SHIB), Polygon (MATIC), and others.

Effective immediately, bitFlyer’s new AML restrictions apply to all corporate and individual customers who deposit and send crypto assets using the exchange.

In the announcement, it was revealed that Coincheck is the only Japanese exchange that is part of the Trust network and can interact with bitFlyer. At the time of writing, Coincheck and bitFlyer only support BTC transactions via Trust, with more cryptocurrencies, including ETH and ERC-20 tokens, coming in the near future, according to bitFlyer.

Related: Binance kicks off transition to new platform in Japan

Despite adopting significant restrictions on transactions between exchanges, bitFlyer still supports transactions to and from self-custody wallets like MetaMask.

At the time of writing, bitFlyer has not responded to Cointelegraph’s request for comment.

The news comes as Japan prepares to enforce new major crypto AML restrictions starting from June 1. On May 23, the Japanese parliament decided to strengthen AML measures to bring the local crypto framework in line with global crypto regulations. The new rules specifically require any platform processing a crypto transfer greater than $3,000 to pass on customer data to the recipient exchange or institution.

Magazine: Crypto City: Guide to Osaka, Japan’s second-biggest city

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Bitcoin

Gryphon Digital wants the court to dismiss Sphere 3D's lawsuit.

Gryphon Digital is actively working towards resolving the lawsuit filed by its former partner Sphere 3D regarding a B...

Opinion

From Digitization to Tokenization, Unified Ledger is Building the Grand Blueprint of Future Currency

The 'Unified Ledger' aims to showcase all the advantages of tokenization, and improve upon the old system by construc...

Policy

eToro gains crypto registration in Cyprus for EU expansion.

In a significant move, eToro, the crypto-friendly brokerage firm, has successfully obtained regulatory approval in Eu...

Bitcoin

Crypto ‘Points’ System: A Promising Alternative to ICOs

Arthur Hayes, CEO of BitMEX, along with Maelstrom CIO, highlights the importance of implementing a 'points' system wi...

Bitcoin

Bidding War Heats Up for Bitcoin ETFs: Fees Drop as Approval Nears

Excitingly, several ETF providers are reducing their management fees for investors interested in purchasing their spo...

Market

Dogwifhat: Defying the Odds and Wagging its Way to the Top of the Meme Coin Food Chain 🐶

In the recent 24 hours, the cryptocurrency and memecoin market has seen a noticeable decline, with Bitcoin's sudden d...