Japan’s cryptocurrency exchanges are preparing for the application of the Financial Action Group’s (FATF) anti-money laundering regulations, known as the “Travel Rule”.
On May 30, the popular Japanese cryptocurrency exchange, bitFlyer, advertisement the adoption of measures in response to the application of stricter AML rules directed at crypto transactions in Japan.
BitFlyer has introduced restrictions on deposits and transfers, disabling transactions to and from exchanges that are not part of the Travel Rule Universal Solution Technology (TRUST) network. Trust, adopted by large companies in the sector such as Coinbase and Crypto.com, is a platform that allows exchanges to securely manage customer data legally required by the Travel Rule.
BitFlyer’s latest restrictions refer to 21 countries and regions that require reporting of information based on the Travel Rule. In the announcement, the listed countries and regions are shown in the table, including jurisdictions such as the United States, Canada, Hong Kong, Singapore, and others.
There are also restrictions on the types of crypto assets supported by TRUST. BitFlyer currently facilitates TRUST transactions for cryptocurrencies such as Bitcoin (BTC) and ether (ETH), as well as active ERC-20 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.
According to the announcement, 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. More cryptocurrencies, including ETH and other ERC-20 tokens, are coming in the near future, bitFlyer noted.
While adopting significant restrictions on inter-exchange transactions, bitFlyer still supports transactions to and from personal wallets like MetaMask.
BitFlyer did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.
The news comes amid Japan’s preparations to apply new anti-money laundering restrictions on cryptocurrencies starting June 1. On May 23, the Japanese parliament decided to strengthen anti-money laundering measures to align the local crypto framework with global crypto standards. The new rules require any platform that processes a cryptocurrency transfer greater than $3,000 to provide customer data to the receiving exchange or institution.
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