Financial Services Agency and National Police Agency Request Enhanced Withdrawal Restrictions for Crypto Asset Exchanges to Prevent Fraud

Details of the Request to Strengthen Fraud Prevention Measures

On June 6th, the Financial Services Agency, together with the National Police Agency, issued a request to the Japan Virtual and Crypto assets Exchange Association (JVCEA) to enhance measures to prevent fraud involving crypto assets. The request includes the pre-registration of withdrawal destinations and enhanced transaction monitoring, among a total of 11 new items.

The request comes in the wake of an increase in fraud related to investment solicitations and romance scams via social networks. Despite measures taken by financial institutions, criminal methods have become more sophisticated, and the amount of money lost to special frauds through exchanges...