Japan’s FSA requests withdrawal delays and stricter authentication to reduce crypto-related scams and fraudulent fund transfers.
Japan’s Financial Services Agency has asked cryptocurrency exchanges to implement withdrawal delays for customers after fiat deposits or digital asset purchases. The move aims to curb rising fraud cases involving crypto accounts, including those used to transfer illicit funds.
The FSA, alongside the National Police Agency, proposed measures such as pre-registered withdrawal addresses, customer-specific limits, and enhanced authentication. Exchanges were also urged to monitor transactions more closely and verify bank remitter names against account holders.
The request was submitted to the Japan Virtual and Crypto Assets Exchange Association but remains non-binding. Authorities cited growing losses among users and increasingly sophisticated scam tactics as key drivers for the push.