Japan Orders Crypto Exchanges to Tighten Fraud Controls With 11-Point Plan

TLDR

• Japan’s FSA and National Police Agency issued an 11-point anti-fraud plan for crypto exchanges.
• The plan calls for stronger withdrawal controls, including possible delays after deposits or crypto purchases.
• Exchanges may require customers to register destination wallet addresses before making transfers.
• Authorities want faster monitoring and information sharing to trace suspicious crypto transactions.
• The guidance targets rising losses from online investment, social media and romance-based scams.

Japan’s Financial Services Agency and National Police Agency have directed crypto exchanges to strengthen controls against fraud and suspicious fund movements.

The joint directive targets withdrawal restrictions, destination wallet checks and transaction monitoring as authorities respond to rising losses from online scams. The measures were issued through the Japan Virtual and Crypto Assets Exchange Association.

Japan Tightens Crypto Exchange Withdrawal Rules

The 11-point plan calls on crypto exchanges to introduce stronger controls when customers move funds after fiat deposits or cryptocurrency purchases. Exchanges may use holding periods or cooling-off measures before allowing certain withdrawals.

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