Benzinga- BitFlyera Japan-based cryptocurrency exchange, announced on Tuesday that it is introducing strict measures against money laundering in accordance with the "Travel Rule" initiated by the global financial watchdog, the Financial Action Task Force ( FATF).
The rules mandate the sharing of transfer information.
The newly implemented measures, effective Tuesday afternoon local time, encompass bitFlyer's transfer restrictions to platforms that do not comply with the Travel Rule Universal Solution Technology (TRUST).
TRUST is a system originally initiated by the US-based cryptocurrency exchange, Coinbaseto ensure compliance by companies with FATF provisions.
BitFlyer has notification requirements in place for sending and receiving cryptocurrency to TRUST-compliant platforms.
This applies to a list of 21 countries, including Japan, Israel, Gibraltar, Hong Kong, Bahamas and Switzerland. BitFlyer has limited transfers to compliant platforms in these countries to TRUST-compliant cryptocurrency assets, which include Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and a selection of ERC-20 tokens.
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Transfers to and from countries not on this list, as well as transfers to personal wallets, can be executed in any cryptocurrency asset available on the bitFlyer platform.
In accordance with these strict measures, domestic cryptocurrency transfers to and from bitFlyer can only be made with Coincheck – the only other TRUST-enabled platform in Japan – and only via Bitcoin.
Recently, Japan pledged to enforce the FATF travel rule, which insists on sharing cryptocurrency transaction information between platforms.
The move came after the watchdog urged G-7 advanced economies to lead the fight against money laundering through digital assets.
Recently, a financial regulator in New York fined bitFlyer's US unit for failing to meet cybersecurity requirements.
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© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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