bitFlyer limits crypto transfers to follow the Travel Rule
- bitFlyer has announced restrictions on deposits and transfers to comply with new anti-money laundering measures under the Financial Action Task Force’s (FATF) “Travel Rule.”
- The exchange will only allow transactions for TRUST-compatible cryptocurrencies, such as Bitcoin, Ethereum, and some ERC-20 tokens.
- TRUST-compatible exchanges in 21 countries, including Japan, will be subject to Travel Rule restrictions.
bitFlyer stated that these new measures are intended to ensure compliance with the Travel Rule requirements, which includes the sharing of customer information between exchanges whenever transactions are initiated to or from their platforms. Transactions to or from platforms that do not comply with the Travel Rule will be restricted. The exchange implemented these restrictions on Tuesday, May 30, 2023.
Restrictions to TRUST-compatible platforms
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 has also limited crypto transfers 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, which is the country’s other TRUST-compatible exchange. 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.
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Last week, Binance began transitioning all its users in Japan to a new regulated platform called Binance Japan.