FSA and NPA Crack Down on Crypto Exchanges

Japan's Financial Services Agency (FSA) and National Police Agency have issued a joint directive to licensed crypto exchanges, demanding stronger fraud controls.

The move comes as Japan reported 19,038 fraud cases in 2023, with total damages reaching ¥45.26 billion. Suspicious transaction reports tied to crypto assets climbed to 19,344 cases during the same period.

Nearly half of all proceeds stolen through online bank fraud were routed into crypto exchange accounts. The FSA and NPA are calling for tighter withdrawal restrictions and more robust monitoring of suspicious fund flows.