Japan to Require Liability Reserves for Crypto Exchanges

[cryptoenthusiast]

Japan’s Financial Services Agency plans to mandate liability reserve funds for exchanges to quickly compensate users after hacks or operational failures. The move follows several global breaches and comes as Japan reevaluates rules for banks holding digital assets. With roughly 12 million crypto accounts, the country aims to strengthen its defenses while modernizing oversight.

[Abdul Khan]

Stronger reserve rules could boost user trust across the industry.

[Nahid Hossen]

Japan continues setting some of the strictest yet clearest standards.