Japan FSA Urges Crypto Exchanges to Implement Withdrawal Delays and Safeguards Against Rising Scams

Woofun AI reports that the Japan Financial Services Agency (FSA), in coordination with the National Police Agency, has issued urgent directives to crypto exchanges to deploy withdrawal delays and robust safeguards against escalating digital asset scams.

On Thursday, the Japan Virtual and Crypto Assets Exchange Association received a joint request requesting operational changes to curb fraud. Exchanges are instructed to enforce withdrawal delays following fiat currency deposits or digital asset purchases.

Furthermore, platforms should require users to pre-register crypto withdrawal addresses and impose a waiting period before newly added addresses can be utilized for transactions.

Woofun AI data shows additional security protocols include customer-specific withdrawal limits, enhanced transaction and access-environment monitoring, and phishing-resistant multifactor authentication. A critical verification step involves ensuring the bank remitter name matches the crypto account holder’s name to prevent unauthorized fund transfers.

These measures are not binding rules, allowing exchanges to determine implementation strategies based on their specific operations, services, and exposure to misuse. This flexible approach aims to balance security enhancements with operational continuity in a rapidly evolving threat landscape.