BitFlyer Restricts Crypto Transfers In 21 Countries Because Of Travel Rule

Key Points:

• Japanese crypto exchange BitFlyer will only support cryptocurrency deposits and transfers from exchanges that comply with the travel rule or wallets such as MetaMask from 15:00 on May 30.
• The types of encrypted assets supported by the Travel Rule are also limited.
• Coincheck is currently the only exchange in Japan that allows withdrawals from BitFlyer.

According to Coinpost, beginning at 15:00 (Japanese time) on May 30, the Japanese crypto exchange BitFlyer will only accept cryptocurrency deposits and transfers from exchanges that follow the travel rule or wallets such as MetaMask.

TRUST (Travel Regulation Universal Solution Technology) – a system that conforms with travel restrictions – also supports a limited range of crypto assets.

These issues have emerged mostly as a result of the many solutions that businesses have used in order to comply with travel regulations. The travel regulation stipulates that “an exchange business that receives a request from a user to transmit virtual currency shall notify the destination side exchange company of the remittance requester and the receiver’s precise information.” The implementation of this legislation is scheduled to begin in June 2023.

As a result, the crypto assets managed by bitFlyer that are TRUST-compliant are Bitcoin (BTC) and Ethereum (ETH). And the ERC-20-compliant crypto assets include “Basic Attention Token (BAT), Chainlink (LINK), Polygon (MATIC), Maker (MKR), Shiva (SHIB), and Palette (PLT).”

According to the media, Coincheck is presently the only exchange in Japan that enables withdrawals from BitFlyer, and transfers or deposits between the two may only be conducted in Bitcoin. BitFlyer also said that if Coincheck develops it, Ethereum (ETH) and other ERC-20 standard crypto assets would be able to be traded in the future. This limitation, however, is confined to the 21 countries and areas where information notification is required under travel laws.

The TRUST protocol used by bitFlyer and Coincheck differs from the “Sygna Alliance” protocol used by other local firms such as GMO Coin and bitbank. As a result, there is currently no compatibility between the two. This is a factor that limits crypto asset remittances even at other domestic crypto asset exchanges approved by the Financial Services Administration.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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