Japan FSA crypto liability reserves: 2026 rules
New reserve mandate
Japan’s Financial Services Agency (FSA) will force every licensed crypto exchange to hold dedicated liability reserves. The funds will pay out users immediately in case of hacks, fraud, operational errors, or unauthorized withdrawals. Reserve size will be calculated from each platform’s trading volume and past incident record. Approved insurance policies can count toward the requirement, reducing the cash burden on operators.
Legislative timeline
The FSA will submit the amendment to parliament in the 2026 ordinary session. It expands the Payment Services Act and layers on top of existing cold-storage rules. A Financial System Council working group is currently finalising the exact formulas and enforcement mechanisms…
