Japan-based crypto exchange bitFlyer announced on Tuesday that it would be implementing new restrictions on transfers of cryptocurrency in order to comply with the Financial Action Task Force’s (FATF) “Travel Rule.”
The Travel Rule is a set of international regulations that require financial institutions to share information about the sender and recipient of cryptocurrency transactions. The goal of the Travel Rule is to prevent money laundering and other financial crimes.
bitFlyer’s new restrictions will go into effect on June 28, 2023. Under the new rules, users will be required to provide additional information when transferring cryptocurrency, including their name, address, and date of birth.
bitFlyer is the first major cryptocurrency exchange to implement the Travel Rule. The company’s decision is a sign that the cryptocurrency industry is taking the issue of financial crime seriously.
The Travel Rule has been criticized by some in the cryptocurrency community, who argue that it is an unnecessary burden on legitimate users. However, supporters of the Travel Rule argue that it is necessary to prevent criminals from using cryptocurrency to launder money.
It remains to be seen how the Travel Rule will impact the cryptocurrency industry. However, bitFlyer’s decision to implement the rules is a significant step forward in the fight against financial crime.
Here are some additional details about the Travel Rule:
- The Travel Rule was first introduced by the FATF in 2019.
- The Travel Rule requires financial institutions to share information about the sender and recipient of cryptocurrency transactions.
- The information that must be shared includes the name, address, and date of birth of the sender and recipient.
- The Travel Rule is intended to prevent money laundering and other financial crimes.
- The Travel Rule has been criticized by some in the cryptocurrency community, who argue that it is an unnecessary burden on legitimate users.
- Supporters of the Travel Rule argue that it is necessary to prevent criminals from using cryptocurrency to launder money.
The implementation of the Travel Rule by bitFlyer is a significant step forward in the fight against financial crime. It is likely that other cryptocurrency exchanges will follow suit in the coming months.
