Japan Imposes Liability Reserve Requirement for Crypto Exchanges

In a move aimed at enhancing user protection, Japan is tightening regulations for crypto exchanges. The Financial Services Agency (FSA) will soon mandate that platforms maintain liability reserves to cover potential losses arising from hacks, fraud, or system failures. This measure stems from the Financial System Council’s advisory report and reflects the FSA’s commitment to bolstering investor safety in a landscape marked by significant exchange vulnerabilities.