Japan's Financial Services Agency and National Police Agency have issued comprehensive withdrawal control measures to cryptocurrency exchanges on August 6, as reported by CoinDesk. The regulators are requesting exchanges to delay certain withdrawals and implement stronger fraud controls as authorities respond to rising digital asset scam losses. Under the new framework, exchanges must pre-register withdrawal addresses and impose waiting periods before newly added destinations become usable, though no uniform nationwide waiting period was mandated, leaving implementation details to individual exchanges and risk profiles.
The withdrawal control measures come in response to alarming fraud statistics from Japan's National Police Agency. Through May 2026, Japan recorded 18,067 special fraud cases with losses reaching ₹151.47 billion yen (approximately $1.2 billion). SNS investment scams accounted for 5,099 cases and ₹70.04 billion yen in losses, while SNS romance scams caused another ₹20.2 billion yen in damages. The trend was already visible in 2025, with police recording 9,523 SNS investment scam cases and ₹128.8 billion yen lost, while romance scams reached 5,645 cases and ₹54.64 billion yen. Crypto-transfer romance scams specifically rose to 2,177 cases with ₹24.77 billion yen lost, helping explain the focus on digital-asset transfer controls.
The FSA's 11-point anti-fraud package extends beyond withdrawal timing to comprehensive security measures. Exchanges are required to set withdrawal limits using customer risk, assets held, transaction purposes and previous activity, with regulators wanting firms to review customers who rapidly make large or frequent withdrawals after restrictions end. Authorities are requesting phishing-resistant multifactor authentication and stronger impersonation checks for higher-risk activity, including comparing bank remitter names with crypto account holders and responding to mismatches. Exchanges are also expected to share fraud indicators and provide information rapidly to police, with suspicious transactions handled faster through holds, withdrawal restrictions or account freezes.
Japan's Financial Services Agency has created a dedicated Digital Assets and Stablecoins Division effective August 7, as reported by Odaily. The new department operates under the Asset Management and Insurance Supervision Bureau, replacing the previous structure where cryptocurrency-related work was handled through the Cryptocurrency and Blockchain Innovation Office and the Cryptocurrency Monitoring Office under the Comprehensive Policy Bureau's Risk Analysis Division. By establishing a standalone division instead of relying on office-level units, the regulator has formally elevated cryptocurrency supervision within its organizational structure.
The immediate effect of these measures will vary by exchange, as the FSA prescribed no single waiting period, meaning users should not assume identical delays across all platforms. Some operators already maintain withdrawal restrictions, with SBI VC Trade stating funds tied to certain quick deposits cannot be withdrawn or transferred as crypto until the eighth day. The FSA and police have asked the Japan Virtual and Crypto Assets Exchange Association to strengthen measures from August, with exchanges required to assess which controls need policy or system changes and deploy them as quickly as possible. The next developments to watch include exchange-specific notices, possible JVCEA guidance, and any later move by the FSA to convert parts of the request into formal supervisory requirements.
