Japan's Financial Services Agency and National Police Agency Require Crypto Exchanges to Strengthen Anti-Fraud Measures

Odaily News: The Financial Services Agency (FSA) and the National Police Agency of Japan have recently issued a joint directive to the Japan Virtual Currency Exchange Association (JVCEA), requiring member exchanges to strengthen anti-fraud measures. The directive includes 11 specific requirements, such as pre-registering withdrawal addresses, enhancing transaction monitoring, strictly verifying identity documents during account opening, and imposing a mandatory holding period on withdrawals after users deposit fiat currency or purchase crypto assets.



The move comes amid a rise in investment scams and "pig-butchering" schemes on social media, where criminals frequently exploit crypto accounts to launder illicit funds. The FSA also recommends that exchanges set flexible withdrawal limits based on customer risk profiles and transaction purposes, suspend or freeze accounts immediately upon detecting suspicious transactions, and strengthen intelligence-sharing with law enforcement. For system upgrades that are difficult to implement in the short term, exchanges are permitted to proceed in phases.