May 31, 2023 12:25
Ahead of
Japan's strict crypto monitoring regime starting in June, cryptocurrency exchange bitFlyer has
adopted tougher anti-money laundering (AML) rules for digital asset
transactions. The measures are in line with global financial watchdog
Financial Action Task Force’s (FATF) AML regulation known as the ‘Travel
Rule’.
BitFlyer Adopts Travel Rule
Japan’s
upcoming rules are expected to impose stricter AML measures on cryptocurrency
transactions in line with the Travel Rule. Finance Magnates reported that
non-compliant firms are expected to face criminal charges in line with the new
regulation.
Under the
Travel Rules, crypto exchanges, wallet platforms, and other service providers
are required to share certain customer information for transactions that are
more than $3,000. This includes details such as the name and address of the
sender and recipient, along with their account information.
Embracing these rules, bitFlyer said it has introduced restrictions on deposits and crypto
transfers to all its corporate and individual customers. The restriction means that users will not be able to initiate transactions with exchanges that are not
part of the Travel Rule Universal Solution Technology (TRUST) network.
TRUST
network is a messaging protocol to securely transmit information between
virtual asset service providers. The platform was developed by leading
exchanges such as Coinbase, BitGo, and Paxos.
In the
announcement, BitFlyer noted that TRUST-supported digital assets currently
covered by its platform includes Bitcoin (BTC), Ether (ETH) and ERC-20 tokens
such as Shiba Inu, MATIC and LINK. The firm also pointed out that only cryptocurrency exchange CoinCheck
is TRUST-compliant in Japan and only BTC transactions are
currently permissible with the exchange in line with the Travel Rule. However, BitFlyer expects ETH and ERC-20 tokens to join the
list soon.
“In the
future, depending on the response of other crypto asset exchange companies, we
will consider adopting travel rule solutions other than TRUST to improve
customer convenience,” BitFlyer said in a statement in Japanese (as translated by Google). It further pointed out that it could decide to change how it handles crypto deposits and transfers.
Stablecoins
in Japan
Meanwhile,
Japan’s financial regulator recently disclosed that the country intends to allow local
investors to trade foreign stablecoins such as USD Coin (USDC) or Tether (USDT) latest by
the end of the second quarter this year. However, certain restrictions are
still expected.
The
development follows the country’s passage of a regulation last year that defined stablecoins as digital
money. The law requires that stablecoins must be linked to the Japanese yen or
another legal currency. It also limits the issuance of stablecoins to licensed
banks, registered money transfer agents and trust companies.
Huobi HK launches; US approves Eurex BTC Futures; read today's nuggets.
This article was written by Solomon Oladipupo at www.financemagnates.com.
World Crypto Global
