Japan's FSA Requests Crypto Exchanges Implement Withdrawal Delays to Combat Fraud

On August 6, 2026, Japan's Financial Services Agency and the National Police Agency jointly requested that cryptocurrency exchanges implement non-binding security measures, including withdrawal delays, to combat rising fraud. The request, sent to the Japan Virtual and Crypto Assets Exchange Association, suggests restricting withdrawals after fiat deposits, requiring pre-registered addresses with waiting periods, and enforcing bank-name matching to protect users.

FSA crypto withdrawal delay request

• ▪On August 6, 2026, Japan's Financial Services Agency and the National Police Agency jointly requested that cryptocurrency exchanges introduce withdrawal delays to combat fraudulent schemes.
• ▪The Financial Services Agency submitted its request for cryptocurrency withdrawal delays to the Japan Virtual and Crypto Assets Exchange Association, the country's self-regulatory body.
• ▪The Financial Services Agency's requested security measures are non-binding, allowing cryptocurrency exchanges to determine how to implement them based on their specific operations and risk exposure.

Rising crypto fraud losses

• ▪Japanese authorities reported an increase in cases where funds obtained through fraudulent schemes are being transferred to cryptocurrency exchange accounts.
• ▪Japan's Financial Services Agency and National Police Agency issued the security request in response to growing financial losses among cryptocurrency exchange users.

Proposed exchange security measures

• ▪The Financial Services Agency's request calls for cryptocurrency exchanges to restrict withdrawals for a specified period after customers deposit fiat currency or purchase digital assets.
• ▪The Financial Services Agency's proposed security measures for cryptocurrency exchanges include customer-specific withdrawal limits, stronger transaction monitoring, and phishing-resistant multifactor authentication.
• ▪The Financial Services Agency requested that cryptocurrency exchanges implement checks to ensure that the name of a bank remitter matches the cryptocurrency account holder's name.

Japan crypto regulatory framework

• ▪The Financial Services Agency acts as Japan's financial regulator, overseeing the country's cryptocurrency exchange guidelines alongside self-regulatory bodies.
• ▪The Japan Virtual and Crypto Assets Exchange Association serves as the self-regulatory body for cryptocurrency exchanges in Japan.

Pre-registration of withdrawal addresses

• ▪The Financial Services Agency requested that cryptocurrency platforms require users to pre-register cryptocurrency withdrawal addresses.
• ▪Under the Financial Services Agency's proposed guidelines, cryptocurrency exchanges would impose a waiting period before newly added withdrawal addresses can be used by customers.