Japan’s FSA and Crypto: What is Happening?
Japan’s Financial Services Agency (FSA) is rolling out a new set of regulations that could shake up the landscape of cryptocurrency transactions in the country. The main goal? To enhance the security and stability of the cryptocurrency market. So, what does this mean? Well, exchanges will now be required to maintain liability reserves to cover losses stemming from hacks or operational failures. This is a significant shift from the previous model, which relied heavily on cold-wallet storage as the main safety net.
The proposed changes, which are set to be submitted in 2026, will require exchanges to hold reserves proportional to their trading volumes. This aligns with the practices of traditional securities firms. In other words, the…
