According to local resource Coinpost, BitFlyer, one of the largest cryptocurrency exchanges in Japan, has announced that from May 30 it will only support deposits and transfers of cryptocurrencies from exchanges or wallets that comply with the travel rule.
Also, asset types are only Bitcoin (BTC), Ethereum (ETH) and ERC-20 tokens such as Basic Attention Token (BAT), Chainlink (LINK), Polygon (MATIC), Maker (MKR) and Shiba Inu (SHIB) limited. This restriction applies to 21 countries and regions (USA, Korea, Hong Kong etc.).
What Are The Cryptocurrency Travel Rules In Japan?
The Travel Rule is a rule stating that "an exchange company that receives a virtual currency remittance request from a user must notify the recipient's foreign exchange company with the detailed information of the remittance requester and the recipient".
Enforcement of this rule will begin around June 2023.
The Travel Rule was proposed by the Financial Task Force (FATF) to prevent criminals and terrorists from misusing cryptocurrencies as a means of payment.
Cryptocurrency wallets such as MetaMask will continue to be used, but Coincheck will be the only cryptocurrency exchange in Japan that allows domestic remittances and deposits.
*Not investment advice.