The Financial Services Agency of Japan and the National Police Agency jointly requested cryptocurrency exchanges to strengthen anti-fraud measures

According to CoinPost, the Financial Services Agency of Japan and the National Police Agency recently jointly sent a letter to the Japan Virtual Currency Exchange Association (JVCEA), requesting exchanges to strengthen anti-fraud measures. This request includes 11 specific requirements, such as the need for withdrawal addresses to be registered in advance, enhanced transaction monitoring, strict verification of identification documents when opening accounts, and setting a withdrawal limit for a certain period after users deposit fiat currency or purchase crypto assets.

The background of this action is the increasing prevalence of investment scams and "pig butchering" schemes on social media, where criminals frequently use crypto accounts to transfer illegal funds. The Financial Services Agency also suggested that exchanges flexibly set withdrawal limits based on customers' risk levels and transaction purposes, and that suspicious transactions should immediately result in account restrictions or freezes, while enhancing intelligence cooperation with the police. For system renovations that are difficult to implement in the short term, exchanges are allowed to proceed in phases. In addition, the Financial Services Agency has officially established the "Cryptocurrency and Stablecoin Division," responsible for related regulatory affairs.