- The platform introduces the so-called “travel rule.”
- It comes after a million-dollar fine from the U.S.
Japan’s largest crypto exchange BitFlyer has introduced the so-called “travel rule.”. It went into effect on May 30.
This means users will not be able to send or deposit cryptocurrency through some providers.
BitFlyer customers will only be able to withdraw amounts to cold wallets or other exchanges that use travel rules.
The new restriction will block withdrawals and deposits within the platform through “unverified” wallets. So users began to worry that their crypto assets would get stuck on the platform.
The company added that it may expand the list of allowed withdrawal methods in the future:
“In the future, we will consider adopting different TRUST policies for travel solutions to improve the customer experience, depending on the service status of other cryptocurrency exchanges.
So please note that the way that supported crypto-assets are processed for deposit and shipment is subject to change.”
They added that the new rule will make the trading environment safer. We note that a month ago the US fined cryptocurrency exchange BitFlyer $1.2 million.
The reason was non-compliance with cybersecurity standards. Perhaps they introduced a new rule to prevent such fines in the future.
They may have introduced a new rule to prevent such fines in the future.