The large Japanese cryptocurrency exchange bitFlyer announced that it will review the verification process of users against the backdrop of criticism from the Financial Services Agency, reports CoinDesk.
As stated in the announcement, starting from April 26, users who have passed online registration will no longer be able to perform transactions with cryptocurrency assets and withdraw Japanese yens until their identity and address are confirmed through receipt of a letter from the exchange. Similarly, the opportunity to pay for goods by bitcoins via bitFlyer will be suspended.
As the newspaper notes, a statement on tightening the verification rules was followed by the publication of the Japanese news agency Nikkei.
So, according to representatives of FSA, the exchange allows customers to start trading immediately after receiving a scanned copy of their identity card. It is noted that the platform at this stage can not fully confirm the information received. This fact aroused fears of the FSA that bitFlyer could be used as a site for money laundering.
Despite the fact that the exchange denies weak compliance with the KYC rules, bitFlyer intends to cooperate with the FSA to strengthen existing measures to prevent money laundering, representatives of the platform said.