Japan’s FSA to Mandate Liability Reserves for Crypto Exchanges to Enhance Security: Report

Japan’s Financial Services Agency (FSA) is set to implement new regulations that will require cryptocurrency exchanges to maintain liability reserves as a means of bolstering the security of their operations, according to a recent report. This initiative aims to enhance consumer protection and ensure the financial stability of the cryptocurrency market amidst growing concerns over potential risks associated with digital assets. The FSA's move reflects its commitment to creating a safer trading environment for users and fostering trust within the rapidly evolving landscape of cryptocurrencies. source: https://www.coindesk.com/markets/2025/11/25/japan-s-fsa-to-mandate-liability-reserves-for-crypto-exchanges-to-enhance-security