⚡️ Japan🇯🇵: the Financial Services Agency (FSA) issued 11 recommendations for cryptocurrency exchanges, including delays in fund withdrawals

⚡️ Japan🇯🇵: the Financial Services Agency (FSA) issued 11 recommendations for cryptocurrency exchanges, including delays in fund withdrawals

The objective is to prevent the misuse of exchange accounts and fraudulent schemes.

⚫️ The Agency explained that the request to impose restrictions, addressed to the Japan Virtual and Crypto Assets Exchange Association, is related to growing losses among crypto asset holders and cases of money laundering. The initiative is also supported by the National Police Agency.

⚫️ In general, exchanges are advised to establish withdrawal limits based on risk levels.

⚫️ Regarding the specific withdrawal delay, no freezing period has been specified, but exchanges are advised to apply it after customers deposit fiat currency or purchase digital assets. Platforms were also encouraged to establish a waiting period before newly added addresses can be used.

⚫️ Rather than being “mandatory”, the measures are described as “recommended”, including stronger monitoring of transactions and access environments, phishing-resistant multifactor authentication, and verification that the name of the sender of bank funds matches the name of the cryptocurrency account holder.

⚫️ If suspicious activity is detected, exchanges are advised to immediately restrict access or block the account.

⚫️ Context: from January to May 2026, police recorded 5,099 cases of investment-related scams on social media, resulting in losses of USD 439,751,323. Another 2,056 cases of romance-related fraud resulted in losses of USD 126,818,852.

⚫️ The FSA stated that exchanges should determine themselves how to implement the control measures.

#news #Asia #crypto #scam

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