🇯🇵 Japan Strengthens Investor Protection: Exchanges to Establish Compensation Funds
The Financial Services Agency of Japan (FSA) is preparing strict new regulations for the crypto industry. The primary innovation is a mandatory reserve fund for every exchange.
What is the purpose?
The fund's assets will be used for immediate compensation to users in the event of hacking attacks, breaches, or theft of assets. This is the regulator's response to the increasing frequency of security incidents.
What else will change?
In addition to creating reserves, the FSA plans to implement:
🚫 Ban on Insider Trading: Strict control over employee operations.🔒 Storage System Audits: Enhanced verification of "cold" and "hot" wallets.📊 Transparency: Expanded obligations for financial reporting and disclosure.
Japan reaffirms its status as one of the most strictly regulated and secure crypto markets in the world. For investors, this means an additional layer of protection; for exchanges, it presents new capital management challenges.
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