New rules apply to customers of the bitFlyer cryptocurrency brokerage, who can now only withdraw funds to bitcoin wallets or other brokers that have implemented the travel rules.
In practice, the new rule restricts withdrawals and deposits on the platform as it is a new initiative by the Japan-based brokerage. Thus, customers are concerned that their values will get stuck on the platform as they cannot even withdraw to their own personal wallets if they have not implemented travel rules.
In a note, bitFlyer said the measure will take effect on Tuesday (30) and all of its customers have already received the notification.
Bitcoin exchange prohibits withdrawals to unknown wallets or exchanges
When bitFlyer noted that it was beginning to restrict transactions between wallets and brokers, bitFlyer noted that all this comes with the new travel rules.
In a statement on its website, the exchange states that the rules prevent terrorists and criminals from freely using cryptocurrencies in their activities.
So to make a deposit with the brokerage, or even a withdrawal, clients need to pay special attention to where they send the funds.
“From May 30, 2023 (Tuesday), we will begin to comply with the travel rules. Depending on the type of cryptocurrency and the provider of the cryptocurrency exchange service, it may not be possible to send or deposit crypto assets.
【トラベルルール導入に伴う当社の対応について】
2023-5-30-05-2023よりトラベルルールの対応を開始いたします。暗号資産の種類や暗号資。
https://t.co/L3a0D1cBf5— bitFlyer (@bitFlyer) May 30, 2023
If a client and cryptocurrency investor attempts to send funds in bitcoin to another unauthorized broker, bitFlyer may prohibit the transaction and not approve the withdrawal.
The same can happen with transactions from, say, the brokerage to a cryptocurrency wallet.
In the case of deposits with the brokerage firm, the strict rules also begin to apply, with deposits only being released from “trustworthy sources”.
Broker is active in several countries, including Europe and the US
It is noteworthy that the new rules announced by bitFlyer may apply in all countries where the company operates. Since the company operates in Europe and the United States, there should be restrictions all over the world.
In Japan, the exchange works with CoinCheck to clear customer transactions on pairs of Ethereum and ERC20 tokens. Until next Tuesday, for example, only bitcoin can be sent between platforms.
Apparently, the new travel rules are meant to appease GaFi, which recommends centralized cryptocurrency brokers check all their clients’ information to prevent money laundering and terrorist financing.
With that, the broker implemented the Travel ruleUniversal Solution Technology (TRUST) in its structure and must initially report transactions from 21 countries.
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Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
