BitFlyer, a major Japanese bitcoin exchange, announced April 12 that the process of “know your customer” will be complicated in connection with which was recently hit by criticism from regulators.
According to the company announcement, starting April 26, users registering online, you will not be able to send cryptocurrency assets or withdraw Japanese yen, while their identity and address will not be confirmed. The verification procedure will now be carried out by receiving a letter from the exchange that is sent to the user-specified address. Payment for goods in bitcoin through the service BitFlyer will also be disabled until the confirmation of identity.
Such actions on the part of the exchange are a response to criticism of the Agency for financial services of Japan (FSA). The regulator has expressed concerns about possible fraud during the passage of the identity check on the bitFlyer platform.
The fact that the exchange allowed users to start trading immediately after submitting scanned copy of any identity document. Financial regulator of Japan does not believe these measures are sufficient in the fight against money laundering.
Despite the fact that the exchange denies its dismissive attitude toward the rule of “know your client”, she went to meet the FSA requirements.
Changes on the exchange occur during the scrutiny of the Japanese regulator, the internal cryptocurrency exchanges in respect of their anti money laundering and compliance with business registration.
Just yesterday, the FSA fined cryptocurrency platform Blue Dream, which is still in the process of applying for a business registration in FSA. The exchange was ordered to suspend its activities until June 10. The FSA said that Blue Dream broke the rules protect clients, not giving them all the necessary information about their own cryptocurrency Coin BD.
Over the last few days this is the third cryptocurrency platform fined by the financial regulator. It seems that the fight against money laundering in Japan has become a priority for the FSA.