Japan’s FSA, working with the National Police Agency, asked crypto exchanges to add friction to withdrawals flagged for fraud. Japan’s Financial Services Agency (FSA) advanced its regulatory march this week with a new set of rules on how it expects crypto exchanges to report cyberattacks and handle withdrawals flagged for scams. The agencies also asked the exchanges to set withdrawal limits based on customers’ holdings and risk profiles. According to the agency’s statement, it is tackling “growing losses among crypto exchange users and cases where funds obtained through fraudulent schemes are being transferred to exchange accounts.” Once funds are off-ramped from exchanges and parked in wallets outside Japanese jurisdiction, the chances of a plummet are near zero.