In recent developments, Japan-based Bitcoin exchange BitFlyer is reporting that it will restrict cryptocurrency transfers to comply with the new rules.
Bitcoin exchange BitFlyer complies with FATF ‘Travel Rule’
On May 30, BitFlyer announced that it will limit its transfers under TRUST (Travel Rule Universal Solution Technology), a system designed to comply with the requirements of travel rules.
According to the information received, these restrictions apply to 21 countries and regions that are obliged to provide information within the scope of travel rules. However, customers will still be able to send and deposit crypto to exchanges outside of these 21 specific countries.
【トラベルルール導入に伴う当社の対応について】
2023年5月30日（火）よりトラベルルールの対応を開始いたします。暗号資産の種類や暗号資産交換業者によっては、暗号資産のご送付・お預入が行えない場合がございます。
詳細につきましては下記をご参照ください。https://t.co/L3a0D1cBf5— bitFlyer（ビットフライヤー） (@bitFlyer) May 30, 2023
Among the measures enacted in the past hours are restrictions on transfers to non-compliant platforms by Travel Rule Universal Solution Technology (TRUST), developed to ensure compliance with the requirements of the FATF initiated by Coinbase.
The exchange has set notification requirements when exchanging crypto on TRUST compliant platforms. There are 21 countries on this list such as Japan, Israel, Gibraltar, Hong Kong, Bahamas, and Switzerland. BitFlyer limits transfers to compatible platforms in these countries to a few cryptocurrencies. These are TRUST-compliant cryptocurrencies such as Bitcoin (BTC), Ether (ETH), and several ERC-20 tokens.
The company stated that transfers to countries and private wallets that are not on this list can be made with any crypto asset available on the bitFlyer platform. In line with these measures, local crypto transfers via bitFlyer can only be made to Coincheck, the other TRUST compliant platform in Japan, and only via bitcoin.
Japan had pledged to enforce the FATF’s travel rule after the FATF called for G-7 nations to take the lead in combating money laundering through digital assets. BitFlyer’s Americas unit was recently fined by a New York financial regulator for failing to meet cybersecurity requirements.
