Japan Implements Stricter Rules for Crypto Exchanges: New Liability Reserve Rule

Japan is taking a decisive step forward in its crypto regulations with the implementation of a new liability reserve rule, designed to protect users from unauthorized losses within the cryptocurrency sector. The Financial Services Agency (FSA) will mandate that exchanges maintain distinct reserves to cover customer withdrawals in case of unauthorized access or system failures. This measure aims to ensure swift compensation for customers in such situations, offering immediate protection against potential financial loss.