New Japanese Regulations: FSA Requires Crypto Exchanges to Have Liability Reserves

Jakarta, Pintu News – The Japanese government, through the Financial Services Agency (FSA), plans to implement a new policy that will change the security landscape of crypto investments in the country.

Starting next year, crypto exchanges in Japan are required to set aside liability reserves to cover potential losses that may occur. This move comes in response to security incidents that have cost many investors in recent years.

New Policy for Better Protection

The bitter experience of past major attacks such as the Bitcoin DMM hack in 2024, which resulted in the loss of more than 4,500 Bitcoin (BTC), has prompted the FSA to take this preventive step. The exchange was forced to raise emergency funds through loans and asset sales to compensate users for their losses, a time-consuming and difficult process for many.

With the new policy, the FSA aims to ensure that user funds can be returned faster and more securely in the event of similar incidents in the future. Required Reserves and Risk Assessment The amount of reserves each crypto exchange is required to set aside will be determined based on trading volume and previous incidents.

These companies are also allowed to purchase insurance policies as an alternative to reducing the financial burden of maintaining large reserves. In addition, the FSA is also planning a framework that will ensure the return of assets to customers if the exchange operator goes bankrupt.

Asset Segregation and Crisis Management

To improve the security of user assets, crypto exchanges will be required to separate user assets from company assets. This move aims to ease the process of returning assets in the event of bankruptcy. A lawyer or court-appointed administrator will be authorized to distribute assets to users if the management team loses control of the platform.

Also read: BTC Rising Sharply? Be careful, analysts say it could be a false rise

Global Approach and Local Adaptation While some global crypto exchanges already have similar backup systems in place, Japan’s approach reflects a local adaptation that takes into account the specific context and needs of investors in the country. By adopting a model already implemented by securities firms, Japan hopes to provide stronger and more consistent protection to crypto investors.

Support for the Digital Asset Industry

In addition to stepping up investor protection efforts, the FSA also plans to support the growth of the digital asset industry by making provisions that allow for the emergence of regulated crypto investment products. The proposal the FSA has released would move cryptocurrencies from under the Payment Services Act to the Financial Instruments and Exchange Act, putting them on par with traditional securities.

Investment Product Development and Tax Reform This move is expected to pave the way for the emergence of investment trusts, ETFs, and tax reforms that treat digital assets like stocks. As such, investors will have more options to invest in digital assets within a safer and more regulated framework.

Conclusion

This new initiative by Japan’s FSA marks an important step in the evolution of the country’s crypto market. By requiring crypto exchanges to set aside liability reserves, Japan seeks to build investor confidence and ensure greater financial stability in the crypto ecosystem. It is hoped that this policy will serve as a model for other countries in improving safety standards and investor protection in the crypto sector.

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Reference

• Crypto News. Japan FSA Plans to Mandate Liability Reserves for Crypto Exchanges. Accessed on November 26, 2025
• Featured Image: Generated by Ai