Japan Moves To Mandate Bank-Style Emergency Reserve Funds For Crypto Exchanges After Mt Gox Fiasco

Given the ongoing volatility in the crypto world, Japan has prepared new regulations to protect investors. On 25 November 2025, Japan’s Financial Services Agency (FSA) revealed that it is implementing a new rule requiring crypto exchanges to maintain dedicated liability reserves. This fund will compensate users in the event of hacks, operational failures, or any such security incidents. Notably, the mandatory reserve requirements for the crypto exchanges will be based on trading volume and risk. According ...