Japan’s Financial Services Agency plans to formulate new regulations requiring crypto exchanges to establish liability reserves

PANews reported on November 25 that according to Cryptobriefing’s Nikkei report, Japan’s Financial Services Agency will require crypto exchanges to establish liability reserves to protect customers from potential security vulnerabilities and operational risks. As the country’s main financial regulator, Japan’s Financial Services Agency is promoting this reserve requirement, aiming to bring virtual currencies into a regulatory framework closer to traditional securities and promote a safer market participation environment.

The new regulations focus on ensuring that exchanges have the ability to cover operational risks and protect the safety of customer funds. With the adjustment of regulatory policies, Japanese asset management institutions are actively exploring new crypto investment products. These changes are expected to expand trading services in the digital asset field and stimulate market competition.

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