The Japanese Financial and Police Offices require the encryption exchange to strengthen anti-fraud measures

ON 7 AUGUST, A JOINT LETTER WAS SENT BY THE JAPAN FINANCE DEPARTMENT AND THE POLICE OFFICE TO JVCEA, AN ASSOCIATION OF THE ENCRYPTED ASSET TRADE INDUSTRY, REQUESTING EXCHANGES TO STRENGTHEN ANTI-FRAUD MEASURES. THE REQUEST CONTAINS 11 SPECIFIC ITEMS, INCLUDING PRIOR REGISTRATION OF THE ADDRESS OF THE WITHDRAWAL, ENHANCED CONTROL OF TRANSACTIONS, STRICT VERIFICATION OF IDENTIFICATION DOCUMENTS AT THE OPENING OF THE ACCOUNT, AND THE IMPOSITION OF A LIMIT ON WITHDRAWAL FOR A CERTAIN PERIOD OF TIME AFTER THE USER HAS DEPOSITED THE LEGAL CURRENCY OR PURCHASED THE ENCRYPTED ASSET. THE CAMPAIGN WAS CARRIED OUT AGAINST THE BACKGROUND OF AN INCREASE IN INVESTMENT FRAUD AND “PORK-KILLER” SCAMS IN SOCIAL MEDIA AND THE FREQUENT USE OF ENCRYPTED ACCOUNTS BY OUTLAWS TO TRANSFER ILLICIT FUNDS. THE OFFICE ALSO RECOMMENDS THAT THE EXCHANGE SET A FLEXIBLE CEILING ON WITHDRAWALS BASED ON THE LEVEL OF RISK OF THE CLIENT AND THE USE OF THE TRANSACTION, THAT SUSPICIOUS TRANSACTIONS BE DETECTED AND THAT ACCOUNTS BE IMMEDIATELY RESTRICTED OR FROZEN, AND THAT INTELLIGENCE LINKS WITH THE POLICE BE STRENGTHENED. FOR SYSTEMS THAT ARE DIFFICULT TO IMPLEMENT IN THE SHORT TERM, EXCHANGES ARE ALLOWED TO MOVE FORWARD IN STAGES。