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Japan's FSA Requests Crypto Exchanges Implement Withdrawal Delays to Combat Scams

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Japan's Financial Services Agency (FSA) has requested that cryptocurrency exchanges implement withdrawal delays and additional safeguards to combat increasingly sophisticated scams involving digital assets.

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

Under the request, exchanges should restrict cryptocurrency withdrawals for a specified period after customers deposit fiat currency or purchase digital assets. They have also been asked to require customers to register withdrawal addresses in advance and introduce a waiting period before newly registered addresses can be used.

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