On May 30, 2023, bitFlyer announced that it had implemented restrictions on crypto transactions to comply with the new Anti-Money Laundering (AML) regulations set by the Japanese Financial Action Task Force. These restrictions apply to all corporate and individual customers and are effective immediately.
The restrictions would prevent users from sending or receiving funds from exchanges that are not part of the TRUST network. The TRUST network comprises crypto exchanges that leverages the Trust technology to securely store customer data in accordance with established regulations. Major industry players like Coinbase and Crypto.com are members of this network.
Currently, bitFlyer supports TRUST transactions for ERC-20 assets like Shiba Inu and Polygon, as well as leading cryptocurrencies like Bitcoin and Ether. However, the exchange plans to expand its support to include additional cryptocurrencies, including ETH and ERC-20 tokens, in the near future.
In terms of communication between exchanges, Coincheck is currently the only Japanese exchange capable of establishing a connection with bitFlyer and is a member of the TRUST network. Both Coincheck and bitFlyer exclusively offer TRUST-based BTC transactions.
Furthermore, bitFlyer also imposed restrictions on transactions involving 21 nations and areas that are subject to information notification requirements under the new rules. Some of the countries affected include countries such as the United States, Canada, Hong Kong, and Singapore.
Despite these limitations on transactions between exchanges, bitFlyer still accepts transfers to and from self-custody wallets like MetaMask.
This decision comes as Japan prepares to enforce new AML regulations on cryptocurrencies starting from June 1, 2023. The Japanese parliament resolved to enhance AML controls on May 23, 2023, to align the country’s crypto framework with international crypto legislation. Under the new regulations, any platform involved in a cryptocurrency transfer exceeding $3,000 must provide customer information to the receiving exchange or institution. This move aims to strengthen transparency and compliance within the cryptocurrency industry.
This move from bitFlyer precedes Japan’s upcoming enforcement of new regulations on cryptocurrencies, starting from June 1, 2023.
On May 23, 2023, the Japanese parliament resolved to enhance Anti-Money Laundering controls to bring the country’s crypto framework in line with international crypto legislation. Under the new regulations, any platform involved in a cryptocurrency transfer exceeding $3,000 must provide customer information to the receiving exchange or institution. The lawmakers expect this regulatory change to bolster transparency and compliance within the cryptocurrency industry.
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