Japan is taking decisive action to strengthen investor protection in its rapidly growing crypto sector.
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The country’s Financial Services Agency (FSA) is preparing a sweeping regulatory overhaul that would require crypto exchanges to maintain mandatory liability reserves, funds specifically set aside to compensate users in the event of hacks, thefts, or system failures.
The move comes as Japan confronts rising digital-asset security breaches and seeks to align crypto oversight with traditional financial market standards.
FSA Targets Liability Reserves to Shield Users From Hacks
According to multiple reports from Japanese media, including The Nikkei, the FSA will introduce a legal framework obligating exchanges

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