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Japan FSA urges exchanges to add withdrawal delays to curb crypto scams
The Financial Services Agency said the guidance includes waiting periods after fiat deposits or purchases, plus address pre-registration and limits on withdrawals to reduce scam-related losses.
Japan’s Financial Services Agency has urged crypto exchanges to add new safeguards aimed at reducing scams and related customer losses, as fraudulent funds increasingly move through exchange accounts. Cointelegraph reports the regulator, working with the National Police Agency, has asked exchanges to restrict crypto withdrawals for a specified period after customers deposit fiat currency or buy digital assets.
The request also calls for users to pre-register withdrawal addresses, with a waiting period before newly added addresses can be used. Exchanges would need to apply customer-specific withdrawal limits and enhance monitoring of transactions and access environments, the report says.
Additional proposals include phishing-resistant multifactor authentication and checks to ensure the bank remitter name matches the crypto account holder’s name. Cointelegraph notes the measures are not binding rules, and the FSA said exchanges should decide how to implement them based on their operations, services, and exposure to misuse.