Japan Bolsters Crypto Protection for Investors with New Regulations

In a move aimed at strengthening investor protections, the Financial Services Agency (FSA) of Japan is introducing new regulations for the country’s cryptocurrency sector. These rules mandate local crypto exchanges to maintain liability reserves, ensuring compensation in case of hacking or other financial losses. Following the 2024 DMM Bitcoin hack, which resulted in substantial losses and exposed vulnerabilities in the exchange infrastructure, the FSA is prioritizing proactive measures to safeguard investor funds.