Strengthening user’s protection against unlawful money transfers to crypto-asset exchange service providers

Summary:

The Financial Services Agency (FSA) of Japan has issued guidelines to strengthen user protection against unlawful money transfers to crypto-asset exchange service providers. This move aims to combat the growing number of cases of damage caused by specialized fraud, particularly in internet banking. The FSA, in collaboration with the National Police Agency (NPA), has encouraged financial institutions to take initiatives to prevent such fraud. The guidelines include examples of measures financial institutions can take, such as stopping transfers to crypto-asset exchange service providers if the sender's name does not match the account name, and strengthening monitoring of unlawful transfers. The FSA has also provided a website link for more information on the guidelines and contacts for further assistance.