Japan FSA asks crypto exchanges to impose withdrawal delays to fight scams
Japanese authorities called for address registration, customer-specific limits and stronger authentication as part of a broader push to curb misuse of exchange accounts.
Japan’s Financial Services Agency (FSA) has called on cryptocurrency exchanges to implement withdrawal delays and additional security measures in response to the rising number of scams involving digital assets. The FSA, in collaboration with the National Police Agency, has jointly requested these measures to tackle fraudulent schemes that lead to significant losses for crypto exchange users.
The proposed safeguards include requiring customers to register their addresses and impose customer-specific withdrawal limits. Exchanges are also asked to introduce a waiting period before newly added withdrawal addresses can be used. Furthermore, platforms should enforce stronger authentication methods, such as phishing-resistant multifactor authentication, and monitor transaction and access environments closely.
Ensuring that the name of a bank remitter aligns with the crypto account holder’s name is also suggested to prevent fraudulent transfers.
These measures, while not binding rules, are being submitted to the Japan Virtual and Crypto Assets Exchange Association, the self-regulatory body for crypto exchanges in the country. The FSA emphasized that each exchange should determine how to implement these safeguards based on their unique operations, services, and exposure to misuse. One example of the impact of these scams is Bitget's decision to exit Japan and close its remaining positions after December 31.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written; read the original for the full account.
