New KYC rules by BitFlyer amid FSA’s investigation
Apr 12, 2018 Posted / 1339 Views
A major Japanese cryptocurrency exchange, BitFlyer, declared that it would toughen its know-your-customer process after announced feedback from the nation's financial controller.
As indicated in the declaration, beginning from April 26, users enlisting online won't have the capacity to send cryptographic resources or withdraw Japanese yen until the point that their personality and address have been affirmed with the receipt of a postal letter from the exchange.
Likewise, paying for products with bitcoin through bitFlyer will be impaired to the point that clients have received a letter that affirms they have passed the company's check procedure.
The amended control comes as a reaction to a report by Japanese media outlet Nikkei prior on Thursday, which demonstrated that Japan's Financial Services Agency (FSA) has raised worries over what it considers a loosely enforced ID verification process on the BitFlyer.
In view of Nikkei's report, the controller said the cryptocurrency exchange has made it workable for its users to begin exchanging instantly only after presenting a photocopy of their ID cards; however, the exchange has yet not confirmed and verified the data of its users. The financial watchdog is worried that the platform could be utilized for illegal tax avoidance exercises.
In spite of the fact that it denies being reckless in consenting to KYC rules, the exchange said it is coordinating with the FSA to reinforce its current against tax evasion measures.
The move comes when the FSA has been investigating local digital currency exchanges concerning their hostile AML rules and business enlistment compliance.
Just yesterday, the FSA issued an administrative punishment that requested Japanese exchanging platform Blue Dream, which is still in the application procedure for business enrollment with the FSA, to suspend its activities until June 10.
The FSA said the firm had abused customer protection measures by requesting financial specialists for its own particular token, "BD Coin," while not making it known to speculators how the cost of the token is determined.
The new rules came days after the FSA issued two other managerial punishments last Friday, correspondingly banning two exchanges from operating for two months.
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