bitFlyer implements FATF’s “Travel Rule” crypto restrictions
- bitFlyer announced the Travel Rule restrictions will apply to TRUST-compatible exchanges across 21 countries.
- The exchange will also only allow transactions for TRUST-compatible cryptocurrencies, which include Bitcoin, Ethereum and some ERC-20 tokens.
- Crypto transfers in Japan can only be made to and from Coincheck, the country’s other TRUST-compatible exchange.
Japan-based cryptocurrency exchange bitFlyer has announced restrictions to deposits and transfers as it seeks to implement new anti-money laundering (AML) measures put in place under the Financial Action Task Force’s (FATF) “Travel Rule.”
bitFlyer said in the notice to its users on Tuesday that the new measures are meant to ensure the exchange complies with the Travel Rule requirements.
Among these requirements is that crypto exchanges have to share information about their customers’ details whenever transactions are initiated to or from their platforms.
Restricted are transactions to or from platforms that do not comply with the Travel Rule. The restrictions on crypto deposits and transfers went into effect on Tuesday, 30 May 2023, the exchange noted.
Restrictions to TRUST-compatible platforms
Travel Rule Universal Solution Technology (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.
As noted above, the Travel Rule requires that crypto exchanges share certain details of users sending crypto via their platform with the exchange receiving the transfer.
To ensure compliance, bitFlyer has therefore moved to restrict 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, which include 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. Currently, only BTC is the TRUST-compatible asset accepted until Coincheck completes its system development to support ERC-20 tokens.
bitFlyer’s decision follows Japan’s recent move to implement FATF’s tough anti-money laundering checks as defined in the travel rule. It also comes a few days after FATF urged G7 nations to work together in the battle against money laundering in the digital assets space.
As reported earlier this week, Binance has began the process of transitioning all its users in Japan to a new regulated plaform dubbed Binance Japan.