Japan FSA Asks Exchanges to Halt Withdrawals Amid Escalating Scam Threat
Japan's Financial Services Agency (FSA) has asked cryptocurrency exchanges to implement measures to prevent scams. The FSA has requested that exchanges introduce withdrawal delays and other safeguards in response to increasingly sophisticated scams involving digital assets.
The measures, which are not binding rules, include restricting crypto withdrawals for a specified period after customers deposit fiat currency or purchase digital assets. Exchanges were also asked to require users to pre-register crypto withdrawal addresses and impose a waiting period before newly added addresses can be used.
The FSA has jointly requested the measures with the National Police Agency amid growing losses among crypto exchange users and cases where funds obtained through fraudulent schemes are being transferred to exchange accounts. The request was submitted to the Japan Virtual and Crypto Assets Exchange Association, the country's self-regulatory body for crypto exchanges.