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🚨 BREAKING: Japan’s new crypto exchange rules shaking up the industry with LIABILITY RESERVES for hacks and unauthorized transfers! 📉
this new liability reserves move in Japan is like when you’re losing in a game and start adding extra lives: it’s all fun and games until the
Introduction of stricter rules for crypto exchanges in Japan: The Financial Services Agency (FSA) plans to introduce new rules requiring exchanges to maintain special “liability reserves” to protect customers in case of hacks or unauthorized transfers. Since December 9, 2025, exchanges in Japan must comply with strict requirements, including asset custody, accounting, anti-money laundering controls, and cold storage rules. The FSA aims to close the protection gap highlighted by previous major crypto failures in Japan.
The new rules will require exchanges to hold liability reserves, with amounts based on standards used by securities firms. The FSA is considering allowing exchanges to use approved insurance policies to meet some reserve requirements. These changes are part of a broader regulatory overhaul, including requirements for third-party providers and reclassification of certain cryptocurrencies under stricter securities rules.
Regulators are pursuing this framework to enhance customer protection, restore market confidence, and close regulatory gaps in Japan’s crypto sector. The main objectives are to provide faster compensation mechanisms, align crypto rules with securities industry standards, and add a financial recovery layer to existing security measures. Japan’s approach could influence global regulatory developments, leading to more professional risk management practices in stock exchanges worldwide.
Implications for stock exchanges and investors include higher operating
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