Japan's regulators take strong action: The Financial Services Agency and the National Police Agency issue new regulations to prevent cryptocurrency fraud

Strict Control of Capital Outflow: Withdrawal Cooling Period and Withdrawal Whitelist

In response to the rampant social media investment and pig-butchering scams, Japanese regulators have urged cryptocurrency exchanges of all sizes to tighten withdrawal risk control from the end of the capital chain.

The new regulations require exchanges to impose external withdrawal restrictions for a certain period after customers deposit fiat currency or purchase cryptocurrencies. In addition, withdrawal addresses will be subject to a strict pre-registration system, and newly registered addresses will be restricted for a certain period. For customers who conduct large or high-frequency withdrawals shortly after the restrictions are lifted, exchanges must proactively verify their transaction purposes and backgrounds, and set tiered withdrawal limits based on the customer's true attributes and holdings.

24/7 Risk Control Response: Tiered Handling of Suspicious Transactions

In light of the rapid capital transfer characteristic of scam cases, the new regulations strengthen the immediate interception and tiered handling capabilities for suspicious transactions.

When the system detects suspicious signs: if fraud is confirmed, the exchange must immediately stop or freeze the relevant accounts' withdrawals and deposits; if confirmation is temporarily unavailable, transactions should be paused, and in-depth verification should be conducted with the customer. Regulatory authorities emphasize that exchanges must establish a 24-hour response mechanism covering nights and holidays to ensure that they can cut off the flow of funds at any time upon discovering special scam proceeds or abnormal withdrawals.

Strengthening the Basic Defense Line: Identity Verification and Inter-Agency Collaboration

In addition to controlling the trading process, Japanese regulators also require a comprehensive strengthening of the security certification system at the account level.

This includes in-depth verification of the authenticity of customer identification documents, mandatory introduction of anti-phishing multi-factor authentication (MFA) systems, and strict verification of the consistency between the names of fiat remitters and the registered account names at the exchange. To form a collaborative anti-fraud effort, the new regulations encourage information sharing between exchanges and strengthen real-time intelligence collaboration with the police. For platforms that cannot immediately implement the above measures due to technical reasons such as system integration, regulators allow them to develop detailed plans for phased implementation.

Data Source: https://bbx.com/ Cryptocurrency Concept Stock Information Database, compiled based on global public company announcements and SEC/TSE disclosure documents from last weekend.