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, 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

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