As reported by Bijiawang, Japan’s Financial Services Agency (FSA) plans to submit new regulations in 2026 requiring crypto exchanges to maintain reserve funds to compensate users in the event of hacks or security breaches. Currently, exchanges store most client assets in cold wallets but are not required to hold financial reserves to cover losses. The proposed rules aim to align crypto regulations with traditional financial market standards, following a series of major security incidents, including the 2026 SBI Crypto hack that resulted in a $21 million loss via Tornado Cash. The FSA also intends to strengthen bankruptcy protection measures, including stricter asset isolation and streamlined client fund return processes.
Japan to Require Crypto Exchanges to Maintain Reserve Funds by 2026
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