Japan Strengthens Cybersecurity Regulations for Crypto Exchanges with Three-Layer Framework

The Japan Financial Services Agency has issued new cybersecurity regulations for crypto exchanges in an effort to strengthen investor protection.

The policy, titled 'Policy on Strengthening Cybersecurity for Cryptocurrency Exchanges and Other Companies,' introduces a three-layer security framework. The first layer, self-help, focuses on the enterprise's own security measures. The second layer, mutual assistance, involves cooperation from self-regulatory organizations to support enterprises in times of need.

The third layer, public assistance, relies on coordination between regulatory authorities to ensure that all relevant parties work together to prevent and respond to cyber threats. This framework aims to improve defense capabilities against rising cyber risks such as social engineering attacks and intrusions into outsourced service providers.