Reports Of Insufficient Customer Verification Process Contested By Bitflyer
Bitflyer, the largest Japanese crypto exchange by volume, has released a statement in an attempt to respond to media reports that the Financial Services Agency (FSA) has asked the exchange to bolster its user verification procedure. The exchange has also disclosed that they are having talks with due authorities and they have implemented additional measures.
Nihon Keizai Shimbun has reported that customers had been able to trade cryptocurrencies at Bitflyer, even with insufficient identity verification; and according to the Japanese law, customers must mail verification document to the exchange: this part of the know-your-customer (KYC) requirements. This has not been possible with other exchanges.
It has been noted that a 24 hours trading procedure: from account opening to trading, is possible at Bitflyer, while a normal procedure with a normal dealer takes about 1 to 3 weeks. The publication explained that since speculators often try to time the market and profit before the price drops, exchange operators who can start trading earliest are attractive.
In a bit to contest that report, Bitflyer claims that the contents reported are different from the facts. They added that the exchange’ discussion with the FSA is blooming. “We are strengthening countermeasures as one of the most important management issues throughout the company.”
The FSA has been recently inspecting crypto exchanges, all joking aside. They lay an emphasis on those ones that have been allowed to operate while their applications are under review. There were 16 fully licensed exchanges, and among them, only GMO Coin and Tech Bureau have been given business improvement orders thus far.
Bitflyer: “We provide services only when we can confirm the agreement of the materials…If there is an error or inadequacy, service provision will not start. Also, in the event that the address is found unknown, the sale and purchase transaction is limited immediately.”
They explain in their statement that in order to offer trading services to their customers, the exchange requests for “Personal information, transaction purpose, occupation, [and] PEPs (those who occupy an important position in foreign governments etc.)” Users must also submit identification materials by registered mail.
