Japan FSA Asks Exchanges to Introduce Withdrawal Delays Amid Rising Crypto Scams
Japan's Financial Services Agency (FSA) has asked cryptocurrency exchanges to introduce withdrawal delays and stronger fraud controls in response to rising scam losses involving digital assets. The request, made on August 6, is part of an 11-point anti-fraud package aimed at preventing scammers from quickly withdrawing stolen funds.
The FSA wants exchanges to restrict crypto withdrawals for a period after customers deposit fiat currency or buy digital assets. Exchanges should also require users to register withdrawal destinations in advance and impose another waiting period after a new address is added. The regulator did not specify either period's length, leaving implementation details to individual exchanges and their risk profiles.
The request goes beyond withdrawal timing, with the FSA asking exchanges to strengthen transaction and access monitoring, detect activity inconsistent with customer profiles, and identify accounts using devices linked to known misuse. Authorities also want suspicious transactions handled faster through holds, withdrawal restrictions, or account freezes.