Japan Tightens Crypto Custody Rules Following Major Hack

Japan’s financial regulator is taking decisive action to strengthen security in the cryptocurrency industry after a significant hack exposed vulnerabilities in exchange systems. The Financial Services Agency (FSA) plans to mandate that crypto exchanges utilize only registered custodians for their operations, closing regulatory loopholes and enhancing overall oversight. This move comes following the DMM Bitcoin hack in 2024, which resulted in a loss of $312 million USD and highlighted the need for tighter security measures.