Japan’s Financial Services Agency is drafting new rules that would force cryptocurrency exchanges to maintain liability reserves, signalling a major shift in the country’s regulatory approach. Officials believe cryptocurrencies today operate more like speculative assets than payment tools, necessitating investor protection frameworks similar to traditional finance.
Currently, exchanges must store customer assets in cold wallets, but the FSA says escalating cyberattacks expose weaknesses in the existing system. The new model would mirror reserve requirements used by securities firms, which typically hold between 2 billion and 40 billion yen depending on market activity and previous operational issues.
The regulator has not finalized reserve amounts for crypto platforms but plans to base them on exchange size and past thefts. The proposal is likely to be submitted to the National Diet in 2026. To reduce the burden on smaller platforms, the FSA may allow part of the reserve requirement to be met through specialized insurance policies.
You need to login in order to Like
Leave a comment