bitFlyer Enforces Travel Rule Restrictions on Crypto Transfers

Summary

  • bitFlyer announced the Travel Rule restrictions will apply to TRUST-compatible exchanges across 21 countries.
  • Crypto transfers in Japan can only be made to and from Coincheck, the country’s other TRUST-compatible exchange.
  • The new measures are meant to ensure the exchange complies with the Travel Rule requirements of sharing customer details when initiating transactions.

BitFlyer Announces Travel Rule Restrictions

Japanese cryptocurrency exchange bitFlyer has announced restrictions on deposits and transfers in order to comply with anti-money laundering (AML) measures put in place under the Financial Action Task Force’s (FATF) “Travel Rule.” The restrictions went into effect on Tuesday, 30 May 2023.

TRUST-Compatible Platforms

The Travel Rule requires crypto exchanges to share certain details of users sending crypto via their platform with the exchange receiving the transfer. To ensure compliance, bitFlyer has restricted transactions to TRUST-compliant platforms across 21 countries including Japan, Canada, South Korea, Singapore, Israel, Hong Kong, Germany and Switzerland. The exchange also revealed crypto transfers are now restricted to TRUST-compatible cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and multiple ERC-20 tokens like Polygon (MATIC), Chainlink (LINK), Shiba Inu (SHIB) and Maker (MKR). In Japan, bitFlyer will only support transactions to Coincheck.

What is TRUST?

TRUST is a system that allows crypto platforms to work together in complying with the Travel Rule. The solution was spearheaded by Coinbase, a leading US-based cryptocurrency exchange.

Complying with AML Measures

By implementing these new measures for AML compliance , bitflyer is ensuring that all its customers ‚ data is secure and that it adheres strictly to existing regulations .

< h2 >Conclusion

In conclusion , bitflyer’s announcement of its travel rule restrictions is an important step towards greater regulatory compliance for cryptocurrency exchanges . By adhering to this rule , they are providing users with a safe and secure trading environment .