Lucy Jane 
BitFlyer Implements AML Measures
Japan’s cryptocurrency exchanges are preparing for the enforcement of the anti-money laundering (AML) regulations known as the Travel Rule issued by the Financial Action Task Force.
bitFlyer, a major Japanese cryptocurrency exchange, announced the adoption of measures on May 30 in response to enforcing stricter AML standards for cryptocurrency transactions in Japan.
BitFlyer has restricted deposits and withdrawals, disabling transactions to and from exchanges not part of the Travel Rule Universal Solution Technology (TRUST) network.
Adopted by industry leaders such as Coinbase and Crypto.com, Trust is a platform that enables exchanges to manage Travel Rule-required customer data securely.
The most recent restrictions imposed by BitFlyer pertain to 21 countries and regions that, per the Travel Rule, require information notification.
In the announcement, the table displays the listed countries and territories, which include the United States, Canada, Hong Kong, Singapore, and others.
There are also limitations on the types of crypto assets that TRUST supports.
BitFlyer currently facilitates TRUST transactions for cryptocurrencies such as Bitcoin and Ether, in addition to ERC-20 assets such as Shiba Inu, Polygon, and others.
Effective immediately, BitFlyer’s new AML restrictions apply to all corporate and individual clients who deposit and send crypto assets via the exchange.
According to the announcement, Coincheck is the only Japanese cryptocurrency exchange part of the TRUST network and can interact with BitFlyer.
At the time of this writing, Coincheck and BitFlyer only support TRUST-based BTC transactions. BitFlyer remarked that additional cryptocurrencies, such as ETH and ERC-20 tokens, are imminent.
BitFlyer still supports transactions to and from self-custody wallets like MetaMask, despite adopting significant restrictions on transactions between exchanges.
The news comes as Japan prepares to implement new crypto-related AML restrictions on June 1.
On May 23, the Japanese parliament voted to strengthen AML measures to bring the local crypto regulatory framework in line with global regulations.
The new rules mandate that any platform processing a crypto transfer more significant than $3,000 must transmit customer information to the receiving exchange or institution.