FSA Warns Japanese Crypto Exchanges to Toughen Anti-Fraud Measures Amid Rising Scams
The Japanese Financial Services Agency (FSA) has issued a warning to cryptocurrency exchanges in Japan, urging them to strengthen their anti-fraud measures. The agency collaborated with the National Police Agency to issue the request on August 6 to the Japan Virtual and Crypto Assets Exchange Association.
The FSA identified a sharp rise in scams involving digital assets, including online investment and romance scams orchestrated over social media platforms. According to the National Police Agency, there were 18,067 fraud cases in the first five months of 2026, resulting in total losses of ¥151.47 billion.
Exchanges are required to implement stricter measures, including enhanced withdrawal safeguards, stronger authentication, and cross-communication with other exchanges and law enforcement agencies. The FSA also emphasized the importance of improving ID verification processes and conducting extra checks on users who show signs of higher fraud risk.