Japan's Financial Regulator Proposes Crypto Exchange Liability Reserves

Japans Financial Services Agency proposes mandatory liability reserves for cryptocurrency exchanges, aiming to protect customers from losses due to hacks or security breaches. This move mirrors requirements for traditional securities firms and comes after a series of security breaches targeting Japanese exchanges. The agency also considers allowing exchanges to purchase insurance instead of holding full cash reserves. These regulations aim to enhance security and consumer protection, restore user confidence, and create a more secure environment for cryptocurrency trading in Japan.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.