Destination Restrictions for Crypto Assets
Bitbank, a domestic crypto asset (virtual currency) exchange company, announced on the 18th that it will not be able to send crypto assets directly to some exchange companies, including Coincheck and BitFlyer, in the near future. rice field.
This is due to the fact that each company has a different information notification system to comply with travel rules.
Bitbank uses “Sygna Alliance”, but it uses a different protocol from “TRUST (Travel Rule Universal Solution Technology)” adopted by BitFlyer and Coincheck, etc., and currently there is no compatibility between the two. There is no
For this reason, even domestic crypto asset exchanges that have obtained a license from the Financial Services Agency will not be able to handle crypto asset remittances from Bitbank to BitFlyer, Coincheck, etc., which have adopted TRUST. .
Coincheck made a similar announcement on May 1.
[Important]Notice of travel rule support for sending and receiving crypto assets https://t.co/3wEacbAwwY
— Coincheck (@coincheckjp) May 1, 2023
In response to the scheduled start date of compliance with the travel rule around June 2023, the destination of crypto-asset remittance from Coincheck will be domestic and overseas crypto-asset exchanges and private wallets (e.g. Metamask, etc.) that are planning to introduce TRUST. ) was explained to be limited to
Both the Sygna Alliance and TRUST (Travel Rule Universal Solution Technology) are industry-led solutions designed to comply with travel rules. Mainly major companies in the United States have adopted TRUST, and it seems that exchanges in the Asia-Pacific region, such as domestic cryptocurrency exchanges, have adopted Sygna.
Major TRUST Adopters:
- bit flyer
- coin check
- crypto garage
- Fidelity Digital Assets
Notable Sygna Alliance Adopters:
- bit bank
- GMO coin
- bit trade
- LINE BITMAX
- Rakuten Wallet
- SBI VC Trade
- hobi japan
- Ascend EX
connection:Summary of additional measures for travel rules and domestic exchanges to be enforced from October
What are travel rules?
The travel rule states that “an exchange company that sends virtual currency at the request of a user must notify the exchange company on the recipient side of the recipient of certain items regarding the sender and the recipient. The decision that it will not be. It was proposed by the Financial Task Force (FATF) and aims to prevent criminals and terrorists from using virtual currency as a means of payment.
In order to comply with this travel rule, by June 9, 2023, the “Law for Partial Revision of the Law Concerning Fund Settlement to Build a Stable and Efficient Fund Settlement System” will be enforced in Japan. be. As a result, crypto-asset exchanges in Japan will be required to send crypto-assets after notifying information such as remittance/recipient name and customer identification number.
In the future, general users of crypto assets will need to check which protocol the exchange company they are using uses, and select exchanges and wallets that can be used for remittance.
connection:18 U.S. Cryptocurrency Companies Launch Proprietary Tools to Comply with FATF Travel Rules