Summary
Japan's Financial Services Agency (FSA) has asked crypto exchanges to introduce withdrawal delays and other safeguards as authorities respond to increasingly sophisticated scams involving digital assets. On Thursday, the FSA said it had jointly requested the measures with the National Police Agency amid growing losses among crypto exchange users and cases where funds obtained through fraudulent schemes are transferred to exchange accounts. The request was submitted to the Japan Virtual and Crypto Assets Exchange Association, the country's self-regulatory body for crypto exchanges.
Key Facts
- FSA jointly requested measures with National Police Agency
- Request calls on exchanges to restrict crypto withdrawals for a specified period after customers deposit fiat or purchase digital assets
- Platforms asked to require users to pre-register crypto withdrawal addresses
- Waiting period required before newly added addresses can be used
- Other safeguards: customer-specific withdrawal limits, stronger transaction/access-environment monitoring, phishing-resistant multifactor authentication
- Checks to ensure bank remitter name matches crypto account holder's name
- Measures are not binding rules — exchanges determine implementation based on operations
- Submitted to Japan Virtual and Crypto Assets Exchange Association (self-regulatory body)
- Response to growing losses among crypto exchange users and fraudulent fund transfers
Why It Matters
Japan's FSA request reflects a global regulatory trend toward protecting crypto users from scams and fraud. The proposed measures — withdrawal delays, address pre-registration, waiting periods, and name-matching checks — are designed to slow down fraudulent transfers and give victims and authorities time to intervene. While the measures are not binding rules, the FSA's joint request with the National Police Agency signals that Japanese authorities are treating crypto-enabled fraud as a priority. The approach mirrors similar measures being considered or implemented in other jurisdictions, as regulators balance the benefits of crypto innovation against the risks of scams, money laundering, and fraud. For exchanges, the request highlights the growing expectation that they implement robust anti-fraud controls even where not strictly mandated.