Japan’s FSA raises concerns over crypto exchanges steering users to brokerage model

Japan’s Financial Services Agency has raised concerns that crypto exchanges are steering users toward the retail brokerage model, which generates higher fee and liquidity-spread revenue than the exchange order-book model, CoinPost reported. Separately, under revised enforcement rules for the Act on Prevention of Transfer of Criminal Proceeds adopted in March, identity verification through IC chip reading will become mandatory from April 1, 2027, for both in-person and non-face-to-face account openings at exchanges in Japan, while existing methods will be fully scrapped.