Citing Bijiie, Japan’s Financial Services Agency (FSA) plans to propose new regulations in 2026 requiring crypto exchanges to maintain reserve funds to compensate users in case of hacks or security breaches. Currently, exchanges store most client assets in cold wallets but are not required to set aside financial reserves. The move aims to align crypto regulations with traditional financial rules, following incidents like the 2014 Mt. Gox collapse and the 2023 SBI Crypto hack that resulted in a $21 million loss via Tornado Cash. The proposed framework will also strengthen bankruptcy protections and asset isolation rules to improve consumer trust.
Japan to Require Crypto Exchanges to Hold Reserve Funds by 2026
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