PANews reported on November 25th, citing a Nikkei report, that Japan's Financial Services Agency (FSA) will require cryptocurrency exchanges to establish liability reserves to protect customers from potential security vulnerabilities and operational risks. As the country's main financial regulator, the FSA is pushing for this reserve requirement to bring virtual currencies under a regulatory framework closer to that of traditional securities and to promote a safer market participation environment.

The new regulations prioritize ensuring exchanges have the capacity to cover operational risks and safeguard client funds. With these regulatory shifts, Japanese asset management firms are actively exploring new crypto investment products, and these changes are expected to expand trading services in the digital asset sector and stimulate market competition.