Japan FSA Asks Crypto Exchanges to Implement Anti-Scam Measures

Japan's Financial Services Agency (FSA) has requested that cryptocurrency exchanges introduce measures to prevent scams, including withdrawal delays and stronger authentication.

The FSA jointly made this request with the National Police Agency in response to growing losses among crypto exchange users and cases where funds obtained through fraudulent schemes are being transferred to exchange accounts.

Exchanges were asked to restrict crypto withdrawals for a specified period after customers deposit fiat currency or purchase digital assets, as well as require users to pre-register crypto withdrawal addresses and impose a waiting period before newly added addresses can be used.

The FSA also proposed other safeguards, such as customer-specific withdrawal limits, stronger transaction and access-environment monitoring, phishing-resistant multifactor authentication, and checks to ensure that the name of a bank remitter matches the crypto account holder's name.