bitFlyer, one of the leading cryptocurrency exchanges in Japan, has announced measures to adopt new crypto deposit limits and transaction restrictions. This is in response to the impending enforcement of the Financial Action Task Force’s Anti-Money Laundering (AML) regulations, widely known as the Travel Rule.
Complying with the Travel Rule: bitFlyer Adopts AML Measures
bitFlyer’s recent actions follow the stricter AML standards being applied to crypto transactions within Japan. As per the new rules, any platform processing a cryptocurrency transfer greater than $3,000 must pass on the customer data to the recipient exchange or institution.
New Restrictions and TRUST Network Participation
The exchange has imposed restrictions on deposits and transfers, effectively prohibiting transactions with exchanges that aren’t part of the Travel Rule Universal Solution Technology (TRUST) network. Major industry players like Coinbase and Crypto.com are part of this network, which facilitates the secure and lawful management of customer data, as mandated by the Travel Rule.
bitFlyer’s Crypto Support within TRUST
The newly imposed restrictions apply to 21 countries and regions that necessitate information notification under the Travel Rule. bitFlyer also limits the types of crypto assets supported by the TRUST network. The exchange currently enables TRUST transactions for Bitcoin, Ether, and ERC-20 tokens like Shiba Inu and Polygon, among others.
Implementation Impact: Corporate and Individual Customers
The new AML restrictions apply to all bitFlyer customers, whether they are corporations or individuals. These customers will now face restrictions when depositing and sending crypto assets through the exchange.
Crypto Transactions Support for Self-Custody Wallets
Despite imposing significant restrictions on transactions between exchanges, bitFlyer continues to support transactions to and from self-custody wallets like MetaMask, offering customers a certain level of transactional freedom.
Awaiting Further Comments from bitFlyer
As of now, bitFlyer has not provided any comments on the new changes. This article will be updated with new information as it becomes available.
Broader Context: Japan Prepares for Crypto AML Enforcement
This development comes as Japan gears up to enforce new crypto AML regulations starting from June 1st. The decision to reinforce AML measures came on May 23, with the Japanese parliament’s decision to align the local crypto framework with global regulations. This is an important step in ensuring the safety and legitimacy
