Japan to require crypto exchanges to hold liability reserves

Japan's Financial Services Agency (FSA) plans to introduce a liability reserve system for cryptocurrency exchanges, Nikkei reported. The agency also intends to overhaul its market framework to apply regulations to cryptocurrencies that are similar to those for traditional securities. Under the plan, exchanges will be required to have countermeasures in place to address various operational risks. Amid this move toward greater regulatory clarity, multiple asset management firms in Japan are reportedly considering the launch of new cryptocurrency investment products.