Further Strengthening Measures to Prevent Crypto-Asset Fraud
Overview
On August 6, 2026, the Financial Services Agency, together with the National Police Agency, again requested that the Japan Crypto-Asset Exchange Association further strengthen measures to prevent fraud and other harm involving crypto-assets, in light of increasingly complex and sophisticated criminal methods, expanding customer losses at crypto-asset exchange service providers, and cases in which proceeds from specialized fraud were transferred to exchange-provider accounts. The request includes preventing fraud when opening accounts, restricting withdrawals, monitoring transactions, responding quickly to suspicious transactions, strengthening authentication, and cooperating with the police.
Key points
- The Financial Services Agency, jointly with the National Police Agency, requested that the Japan Crypto-Asset Exchange Association further strengthen measures to prevent fraud and other harm involving crypto-assets.
- The background includes increasingly complex and sophisticated criminal methods, expanding customer losses, and cases involving the transfer of proceeds from specialized fraud.
- The request covers account opening, withdrawals, transaction monitoring, authentication, information sharing, and cooperation with the police.
Overview
On August 6, 2026, the Financial Services Agency indicated that criminal methods were becoming more complex and sophisticated despite various measures being implemented by financial institutions. Customer losses at crypto-asset exchange service providers were expanding, and cases were also occurring in which proceeds from specialized fraud were transferred to accounts held by crypto-asset exchange service providers.
In light of this situation, the Financial Services Agency, jointly with the National Police Agency, again requested that the Japan Crypto-Asset Exchange Association implement measures to prevent fraud and other harm involving crypto-assets. The specific details of the request are presented in the attached overview.
Impact
The source directly states that customer losses at crypto-asset exchange service providers are expanding and that cases are occurring in which proceeds from specialized fraud are transferred to accounts held by crypto-asset exchange service providers.
Details
The requested measures include strengthening fraud prevention and understanding of actual circumstances when opening accounts, verification and warnings to prevent fraud and other harm, stronger authentication when impersonation or similar activity is suspected, and confirmation that the name of the remittance requester matches the name of the crypto-asset account holder.
The request also calls for restrictions on withdrawals for a certain period after depositing fiat currency or purchasing crypto-assets, a system requiring withdrawal destinations to be registered in advance together with restrictions on withdrawals for a certain period after registration, and the appropriate setting of withdrawal limits.
It further requests stronger monitoring of transaction and access environments; faster customer verification, transaction restrictions, and account freezes after suspicious transactions are detected; information sharing that helps identify detection triggers and understand actual circumstances; and stronger provision of information to and cooperation with the police.
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