Japan Tightens Crypto Security Rules: Liability Reserves Now Mandatory

To enhance user security and prevent potential losses, Japan’s Financial Services Agency (FSA) is implementing stricter regulations for cryptocurrency exchanges operating within the country. The new rules mandate that all exchanges must maintain liability reserves specifically designed to compensate users in case of hacks or security breaches. This policy follows a string of high-profile incidents impacting user funds. The FSA’s tightening measures aim to bolster confidence in the sector and improve accountability.