Japan Mandates Reserve Funds for Crypto Platforms
Japan's Financial Services Agency is tightening regulations on cryptocurrency exchanges, requiring them to establish reserve funds to cover potential losses from hacks or unauthorized access. The move aims to expedite customer compensation and bolster market stability.
The proposal, developed by the Financial System Council's working group, reflects growing institutional scrutiny of digital asset platforms. By mandating these safeguards, Japanese regulators are prioritizing investor protection while acknowledging crypto's expanding role in global finance.