Japan FSA and Police Mandate 11 Anti-Fraud Rules for Crypto Exchanges

Japanese regulators issue 11 strict anti-fraud requirements to exchanges, including address pre-registration and withdrawal limits, to combat rising investment scams.

Woofun AI reports that the Financial Services Agency and the National Police Agency have directed the Japan Virtual Currency Exchange Association to implement 11 specific anti-fraud measures. These requirements include mandatory pre-registration of withdrawal addresses, enhanced transaction monitoring, strict identity verification, and time-limited withdrawals following fiat deposits or crypto purchases. The directives aim to counter increasing investment scams and "pig butchering" fraud schemes where criminals utilize crypto accounts for illicit fund transfers. Regulators also advise exchanges to set flexible withdrawal limits based on customer risk profiles, freeze suspicious accounts immediately, and improve information sharing with law enforcement. While phased implementation is permitted for complex system changes, the FSA has also established a dedicated "Virtual Currency and Stablecoin Division" to oversee these regulatory tasks.