An advisory body to Japan’s Financial Services Agency will recommend that crypto exchanges and firms create liability reserve funds to quickly compensate users affected by hacks or other events. The FSA plans to revise requirements for local crypto companies to include fast user compensation measures; the move follows recent global exchange hacks and comes alongside a broader review that could allow banks to purchase and hold crypto assets. Japan has about 12 million crypto accounts. The summary also notes yen-pegged stablecoin developments: JPYC launched in October backed 1:1 by bank deposits and government bonds, Japan’s 2022 ban on non-bank stablecoin issuance, the FSA signaling possible approval of a yen token by 2026, and banks’ Progmat platform and firms like Monex exploring stablecoins.

The advisory recommends exchanges hold liability reserve funds and the FSA will revise requirements to enable fast user compensation (fact). This increases consumer protection and, together with reviews on bank custody and yen-stablecoin developments (JPYC launch, 2022 non-bank stablecoin ban, possible 2026 yen token approval, Progmat/Monex activity), points to stronger regulatory and institutional involvement—supportive for confidence but not an immediate market-moving event for short-term traders (fact).