bitFlyer, Japan’s largest cryptocurrency exchange, announced on Oct. 2 that it will introduce a new “cool-down” measure starting Oct. 15 that partially restricts external transfers of crypto assets for 48 hours after Japanese yen deposits. The policy aims to prevent fraud losses and illicit fund transfers, targeting individual users who completed identity verification less than 90 days ago.
Under the new system, when eligible users deposit Japanese yen, they will be unable to send crypto assets equivalent to the total deposit amount (excluding fees) minus ¥100,000 (approximately $630) to external addresses for 48 hours after the deposit. If the total deposit is ¥100,000 or less, no restriction applies.
For deposits made in multiple installments, a 48-hour cool-down period applies to each individual deposit, with restrictions lifted sequentially as each period expires. Existing account holders are also subject to the measure if they completed identity verification less than 90 days ago.
During the cool-down period, yen deposits and withdrawals, crypto asset trading, holding, and receiving remain available as usual. The restriction is limited to external transfers, designed to minimize impact on normal trading activity. Deposits made via quick deposit are excluded from the cool-down since they are already subject to a separate 7-day transfer restriction.
Users can check the amount available for transfer on the crypto asset sending screen, and eligible deposit records will display “cool-down in progress.” The yen deposit details screen also shows the date and time when transfer restrictions will be lifted.
bitFlyer President Yuzo Kano noted that there have been reports of suspicious phone calls impersonating the company, urging users to verify through official contact channels before responding to claims of unauthorized access or sharing login information. The company has previously stated on its crypto asset transfer screen that it never requests users to make transfers, warning against third parties impersonating the company or soliciting transfers through social media, matching apps, or investment groups.
Regulatory pressure behind the move
The measure comes as Japanese regulators push exchanges to strengthen anti-fraud measures. On Aug. 6, Japan’s National Police Agency and Financial Services Agency jointly requested the Japan Virtual and Crypto Assets Exchange Association (JVCEA), an industry body, to strengthen fraud prevention measures, including restricting external withdrawals for a certain period after fiat currency deposits or crypto asset purchases.
Japan’s Financial Services Agency has identified patterns that exchanges should scrutinize as indicators, including larger-than-usual transactions, frequent transactions, sudden crypto asset withdrawals, and transfers to wallets associated with illicit activity. A key concern is that once stolen funds enter an exchange account, criminals can move them quickly through crypto asset platforms.
Similar measures are progressing at other exchanges. Coincheck announced on Sept. 10 that it would introduce restrictions on transfers to newly registered destination addresses for a certain period starting Sept. 15. That system imposes a waiting period after registering a transfer destination, with already-registered addresses exempt. bitFlyer’s approach differs in that it applies restrictions based on deposits.
Risk-based management spreads across the industry
This development signals an industry-wide shift toward strengthening transaction monitoring rather than relying solely on identity verification at account opening. Binance Japan, for example, has already introduced withdrawal questionnaires, warnings for high-risk addresses, and temporary withdrawal restrictions under certain circumstances.
bitFlyer’s cool-down is intended to restrict external movement of newly deposited funds while minimizing impact on normal trading. The 48-hour waiting period draws attention as a trade-off between fraud prevention and user convenience.
Japan’s Financial Services Agency in June ordered moomoo Securities to suspend new account openings for three months due to compliance, anti-money laundering, and cybersecurity issues, indicating that pressure for stronger management is rising across financial institutions, not just in the crypto asset sector.
AloJapan.com