Japan FSA asks crypto exchanges to impose withdrawal delays to fight scams
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Japan’s Financial Services Agency (FSA) has requested crypto exchanges to implement withdrawal delays and other protective measures to combat increasingly sophisticated scams. This request was made jointly with the National Police Agency in response to rising losses among crypto users and fraudulent transfers to exchange accounts. Exchanges are asked to restrict withdrawals after fiat deposits or asset purchases, require pre-registration of withdrawal addresses, and impose waiting periods before new addresses are used.
Why it matters
The FSA’s request aims to reduce fraud-related losses by adding delays and verification steps that could prevent or slow down unauthorized or scam-related withdrawals. These measures seek to protect users and improve the security environment within Japan’s crypto industry amidst a rise in scams. Although not mandatory rules, the guidance signals regulators’ growing involvement in controlling crypto exchange practices due to the risks involved.
Key context
The FSA and National Police Agency collaborated on the proposal due to growing cases of fraudulent schemes involving crypto users in Japan. The request was sent to the Japan Virtual and Crypto Assets Exchange Association, the country’s self-regulatory organization for crypto platforms. Additional safeguards suggested include transaction monitoring, multifactor authentication resistant to phishing, withdrawal limits per customer, and name matching for bank remitters and crypto account holders.
Key numbers and entities
The main entities involved are Japan’s Financial Services Agency (FSA), National Police Agency, and the Japan Virtual and Crypto Assets Exchange Association. The source references no numerical figures or specific crypto tickers.
What remains unclear
The measures are recommendations, not binding rules, so how and when exchanges will implement them is unspecified. The source does not provide details on the length of withdrawal delays or the exact processes exchanges will adopt. It does not flag other open questions explicitly.