Japan's Financial Services Agency (FSA), together with the National Police Agency, issued a joint statement on 6 August 2026 to the Japan Crypto Asset Exchange Association, requesting that crypto asset exchange operators strengthen measures to prevent fraud and related harm to customers.
Background to the request
According to the statement, despite existing measures implemented by financial institutions, methods used in fraud involving crypto assets have become more complex, resulting in increasing harm to customers of crypto asset exchange operators. The statement was issued in part in response to cases involving funds obtained through special fraud being transferred into crypto asset accounts.
Requested measures
The joint statement requested that crypto asset exchange operators implement a series of measures, including strengthening fraud prevention and monitoring at the point of account opening, and introducing additional confirmation steps and warnings intended to prevent fraud and related harm.
The requested measures also include placing restrictions on crypto asset transfers for a defined period following fiat currency deposits or purchases, and establishing a pre-registration system for transfer destinations, with corresponding restrictions on transfers for a period following registration. Operators were also asked to appropriately set limits on outbound transfers and to strengthen monitoring of both transactions and account access activity.
Additional requested measures include accelerating the verification of suspicious transactions once detected, alongside measures such as transaction restrictions and account freezes where appropriate. The statement also called for strengthened authentication procedures in cases where impersonation or similar fraud is suspected, and for confirmation that the name of a remittance requester matches the name associated with the relevant crypto asset account holder.
Finally, the statement requested that operators share information supporting the identification of initial points at which fraud or fraudulent use is detected, to better understand the scope of the issue and advance countermeasures, as well as strengthening the provision of information and cooperation with police authorities.
Implications for crypto asset exchange operators
The joint statement reflects continued regulatory attention in Japan on fraud involving crypto asset transfers, following previous requests to industry participants. As crypto-related fraud methods continue to evolve, the requested measures indicate an expectation that exchange operators will strengthen monitoring, verification, and cooperation with law enforcement across multiple stages of the customer transaction lifecycle, from account opening through to the detection and reporting of suspicious activity.
