Home Regulation bitFlyer implements FATF’s “Travel Rule” crypto restrictions

bitFlyer implements FATF’s “Travel Rule” crypto restrictions

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  • bitFlyer announced that Travel Rule restrictions apply to TRUST-compatible exchanges in 21 countries.
  • The exchange also only allows the trading of TRUST-compatible cryptocurrencies, including Bitcoin, Ethereum, and some ERC-20 tokens.
  • Cryptocurrency transfers in Japan can only be made to/from Coincheck, another TRUST compatible exchange in Japan.

Japan-based virtual currency exchange bitFlyer announced Aiming to introduce a new anti-money laundering (AML) policy introduced under the Financial Action Task Force (FATF) “Travel Rule”, it set limits on deposits and transfers.

In a notice to users on Tuesday, bitFlyer said the new measures are aimed at ensuring exchanges comply with Travel Rule requirements.

Among these requirements is the need to share information about customer details whenever a cryptocurrency exchange initiates a trade with the platform.

Restricted are transactions with platforms that do not comply with the Travel Rules. The restrictions on cryptocurrency deposits and transfers went into effect on Tuesday, May 30, 2023, the exchange said.

TRUST Compatible Platform Limitations

Travel Rules Universal Solution Technology (TRUST) is a system that enables cryptocurrency platforms to work together in compliance with Travel Rules. The solution was led by Coinbase, a leading US-based cryptocurrency exchange.

As noted above, the Travel Rule requires cryptocurrency exchanges to share certain details of users who send cryptocurrencies through their platforms with the exchanges receiving the transfers.

Therefore, to ensure compliance, bitFlyer has decided to restrict transactions to TRUST compliant platforms in 21 countries including Japan, Canada, South Korea, Singapore, Israel, Hong Kong, Germany and Switzerland.

The exchange also notes that cryptocurrency remittances currently include multiple ERC-20 tokens such as Bitcoin (BTC), Ethereum (ETH), Polygon (MATIC), Chainlink (LINK), Shiba Inu (SHIB) and Maker. It also revealed that it is restricted to TRUST compatible cryptocurrencies. (MKR).

In Japan, bitFlyer only supports trading to Coincheck. Currently, until Coincheck completes system development to support his ERC-20 token, the only accepted TRUST-compatible asset is his BTC.

bitFlyer’s decision follows Japan’s recent move to introduce stringent FATF anti-money laundering inspections as defined in its travel regulations. It also comes days after the FATF called on G7 countries to work together in fighting money laundering in the digital asset sector.

As reported earlier this week, Binance has begun the process of migrating all users in Japan to a new regulated platform called Binance Japan.

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