BitFlyer Has Vowed to Strengthen User Verification Process After Criticism From FSA
You must reveal your identity
BitFlyer has received criticism from Japanese financial regulator positively saying that it will toughen its know-your-customer process. The exchange stated that from April 26th all customers would be required to confirm their identity and address. BitFlyer went on to clarify that those who will not submit their details will not be able to send, receive or withdraw their digital currencies.
More to that paying goods and services using Bitcoin through BitFlyer will be disabled to all customers who will not have clarifies their identity. The company has revised its rules after reports emerged indicating that Japan’s Financial Services Agency (FSA) had raised concerns over the loosely enforced verification process in the exchange platform.
According to the report from FSA, BitFlyer has made it possible for people to trade immediately after submitting the ID copies before even confirming and verifying whether the user’s information is correct or wrong. More to that FSA is also concerned that the exchange could be used for money laundering.
Even through BitFlyer has denied the reports of being careless with complying with the regulator’s rules it has said that it’s cooperating with the agency to strengthen the existing anti-money laundering activities. This move has come at a time when FSA is scrutinizing all domestic cryptocurrency exchanges because of money laundering and also business registration compliance.
FSA has already suspended a number of exchanges for non-compliance the latest being Blue Dream which has been suspended until June 10th. The firm has also been issued with an administrative penalty because of what FSA termed as violation of customer protection measures. The firm is also being accused of soliciting investors for its own token ‘BD Coin’ before they even inform the customers how the price of the token will be determined.
The order to stop Blue Dream came yesterday barely a week after the agency barred two more exchanges from conducting any operations for two months.