Tokyo-based crypto exchange BitFlyer will open new domestic accounts after a voluntary suspension over regulatory concerns.
The Tokyo-based crypto exchange company BitFlyer plans to reopen new domestic accounts after a year-long hiatus due to issues with consumer identity verification.
The company, which voluntarily suspended operations on June 20, 2018, has been working on improving its ID mechanisms and protocols after receiving an operational improvement order due to concerns about financial terrorism and money laundering from Japan’s Financial Services Agency (FSA). The company was one of six crypto exchanges to be sent an improvement order by the FSA.
BitFlyer was also accused of having very lax know-your-customer (KYC) procedures that allowed consumers to partake in limited actions prior to the confirmation of their details by the country’s largest newspaper, Nekkei.
In a press release at the time, BitFlyer apologized to customers and explained that it was working on resolving the issue and taking preventative measures to avoid future problems with identity verification.
At the time BitFlyer received the operational improvement order, users that were already registered were unable to withdraw Japanese yen or complete transactions with other cryptocurrencies until their identities and addresses were verified via the postal system.
The new account activation procedure may take longer than usual, but the company notified clients that the details for opening new accounts will be updated on their website today, July 3, 2019.