Japan's Financial Services Agency has asked cryptocurrency exchanges to hold off on processing withdrawals, a measure aimed at stopping scammers from moving stolen funds. The regulator also wants exchanges to register withdrawal addresses and set customer-specific limits, along with stronger authentication checks.
What exchanges are being told
The FSA's request covers several points. Exchanges would need to introduce withdrawal delays, meaning users can't immediately move funds out after a request. The agency also called for address registration, so withdrawals go only to pre-approved wallets, and customer-specific limits on how much can be pulled out at once. Authentication is also on the list, with the regulator pushing for stronger verification before a withdrawal is processed.
The fight against scams
The moves are part of a broader push to curb misuse of exchange accounts. The FSA has been concerned about scams that use exchanges as a conduit to launder stolen crypto. By slowing down withdrawals and tying them to registered addresses, the agency wants to make it harder for fraudsters to quickly cash out. The measures also give exchanges more time to spot suspicious activity.
