Japan's Financial Services Agency, cryptocurrency exchange withdrawal restrictions..."Withdrawal delays and address registration"

▲ Japan, cryptocurrency regulation, Bitcoin (BTC), Ethereum (ETH)/AI-generated image

Japanese financial authorities have requested cryptocurrency exchanges to implement withdrawal delays and pre-registration of withdrawal addresses to prevent cryptocurrency fraud. This measure aims to block the rapid transfer of funds to fraudsters.

According to Cointelegraph, a cryptocurrency media outlet, on August 7 (local time), Japan's Financial Services Agency (FSA), in cooperation with the National Police Agency, requested cryptocurrency exchanges to adopt new anti-fraud measures. This response comes as user damages from cryptocurrency exchanges have increased and cases of fraudulently acquired funds flowing into exchange accounts have emerged.

The FSA proposed restricting cryptocurrency withdrawals for a certain period after customers deposit fiat currency or purchase cryptocurrency. It also included a plan for users to pre-register cryptocurrency withdrawal addresses, allowing newly added addresses to be used only after a certain period. The FSA and the National Police Agency conveyed these requests to the Japan Virtual and Crypto Assets Exchange Association, a self-regulatory body for cryptocurrency exchanges.

They also requested setting withdrawal limits tailored to the characteristics of each exchange's customers. Measures to strengthen monitoring of transaction history and access environments, and to introduce multi-factor authentication resistant to phishing attacks, were also proposed. A procedure to verify that the name of the bank remitter matches the name on the cryptocurrency exchange account was also included.

These measures are not legally binding regulations. The FSA stated that each exchange should determine the specific implementation method, taking into account its business structure, services offered, and risks of misuse. Japanese authorities focused on simultaneously strengthening withdrawal speeds, address registration procedures, and authentication systems to block the path of fraudulent funds moving through cryptocurrency exchanges.

[Key Summary of the Article]

-Japan's Financial Services Agency and National Police Agency have requested cryptocurrency exchanges to implement withdrawal delays and pre-registration of withdrawal addresses.

-Measures also include customer-specific withdrawal limits, enhanced transaction monitoring, and phishing-resistant multi-factor authentication.

-These measures are not legal obligations, and exchanges will determine the implementation method based on their business structure and risks of misuse.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*