Japanese Bitcoin Exchange bitFlyer Limits Deposits and Withdrawals

By: Unknown on June 16, 2017

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Over the past few months, we have seen Chinese cryptocurrency exchanges introduce certain limitations when it comes to withdrawals. This was, apparently, due to new AML regulations. In an email sent out to clients, it appears bitFlyer is looking to do the same. Quick Deposit users will face deposit and withdrawal limitations moving forward. The company is dealing with a growing number of illegal acts.

A NECESSARY SETBACK FOR BITCOIN IN JAPAN

Running a cryptocurrency exchange platform is not an easy business by any means. There are dozens of rules, regulatory requirements, and other things to take into account at all times. Every now and then, companies may be forced to take some harsh action so they can ensure the continuity of their service. That is exactly what Japanese exchange bitFlyer is doing, by introducing deposit and withdrawal limitations.

More specifically, the company is introducing limits for Quick Deposit customers. All users relying on this payment method will see their deposits and withdrawals limited until further notice. This affects Japanese yen withdrawals, bitWire, Pay, and virtual currency payments and withdrawals. Some people will see this as bad news, even though bitFlyer would not introduce these limitations unless it was absolutely necessary

According to the email which all bitFlyer users have received, the company sees an increasing number of “illegal acts”. Additionally, they are concerned for illicit financial flows related to virtual currencies. it is only to be expected the positive regulation for Bitcoin and altcoins will attract people trying to abuse the system in one way or another. It appears these malicious actors are now targeting bitFlyer, albeit other exchanges may be impacted as well.

As of right now, the company is scrutinizing all recent deposits and withdrawals to ensure nothing illegal is taking place. The company wants to provide a safe and secure trading environment. Some customers may be asked for additional information regarding the origin and destination of their funds. Furthermore, bitFlyer may end up closing specific accounts and further restricting transactions if needed.

Once again, these changes will only affect bitFlyer users who make use of the Quick Deposit option. Other platform customers will not suffer from these restrictions as of right now. Virtual currency trading will resume as it always has, albeit withdrawing and depositing additional funds may be hindered a bit. It is unclear when these measures will be removed at this time. BitFlyer is confident these changes will help the virtual currency ecosystem grow in Japan.