Japan is moving with the time to adopt cryptocurrency. However, digital asset transactions are not as secure as one assumes them to be. Hence, there are tons of improvements that governments of respective countries are looking to implement in the days to come. Japan, for one, has decided to implement the Travel Rule with effect from June 01, 2023, to better deal with the misuse of crypto transactions, mostly to hide the malicious purpose of laundering illegal financial transactions.
Simply put, Travel Rule seeks exchange platforms to share the data of customers transacting more than $3,000. This will help keep track of money movement, thereby tracing criminal activities with convenience. It applies to cryptocurrencies and stablecoins, a form of digital assets that are directly pegged to fiat currencies like the US dollar.
Implementation of the Travel Rule comes months after the Japanese Government revised its laws relevant to cryptocurrency. Specifically speaking, the revision was made in December, right after the Financial Action Task Force highlighted insufficient steps taken to deal with the problem.
While Japan has been in the headlines now, several oversight organizations in different countries are attempting to raise their local regulations to bring them to par with the global standard. This is to strengthen the monitoring mechanism to know if money has been obtained from an illegal source. Information about customers that exchange platforms will have to share is their names and addresses.
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Parties, customers, or platforms found violating the rule will be dealt with criminal punishment. Long overdue, especially if the community really wants to accelerate the global adoption of digital assets and their transactions.
bitFlyer has joined the club by announcing to put restrictions on deposits and transfers. Importantly, the exchange platform has disabled transactions that are processed from a platform that is not compliant with the Travel Rule.
Therefore, any platform that is not a part of the TRUST network, short for Travel Rule Universal Solution Technology, will not be able to see its transactions getting processed by bitFlyer. The network already has Coinbase and Crypto.com as the major participants.
Restrictions imposed by bitFlyer span over 21 countries, including, but not limited to, Canada, the United States of America, and Hong Kong. A quick adoption of the revised regulation implemented by Japan answers the question – is bitFlyer safe for customers of the regions? AML restrictions on bitFlyer are applicable to individual and corporate customers.
bitFlyer continues to support self-custody wallets like MetaMask. The exchange platform supports BTC through TRUST, with more digital assets expected to make their way on the list soon.
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CoinCheck, a Japanese exchange platform, is a part of TRUST. It has the ability to interact with bitFlyer in supporting BTC transactions through the network. ETH and other ERC-20 tokens could soon make their way to the network, according to a statement by bitFlyer. More details on the development are awaited.
