Japan is raising the bar for crypto security. Regulators will soon require exchanges to hold financial reserves to cover customer losses from hacks, a report from Nikkei Asia states.
The Financial Services Agency (FSA) is crafting a bill, planned for 2025, that mandates these liability reserves—a first for Japan’s crypto industry.
The push follows the major $312 million DMM Bitcoin hack, which revealed the risks of relying on unregulated third-party vendors. This new reserve rule is part of a larger package that will also bring these external partners under formal registration and oversight.
