Japan Takes Aim at Crypto Exchange Security: New Reserve Requirements Enacted

Japan’s Financial Services Agency (FSA) is bolstering user safety by introducing mandatory reserve requirements for cryptocurrency exchanges. The FSA aims to strengthen transparency and trust in the market, with new regulations expected to be included in the Financial System Council report scheduled for discussion on Wednesday. This initiative mandates that exchanges hold a financial reserve to cover potential losses due to hacking or operational errors. This move ensures user assets are protected while establishing a robust security standard for all licensed platforms in Japan, including smaller ones.