Japan’s largest cryptocurrency exchange, bitFlyer, will implement a new anti-fraud measure called “Cooldown” starting October 15, 2026. The policy applies to individual users within 90 days of completing identity verification. Under this system, when an eligible user deposits Japanese yen (JPY), a 48-hour period begins during which part of their crypto holdings cannot be transferred to external wallets or to other exchanges.
Cooldown system to limit outbound crypto transfers
The degree of restriction is dynamically determined by the user’s JPY deposits within the previous 48 hours. bitFlyer will hold crypto assets equivalent to all deposits made during the 48-hour window, minus JPY 100,000. Deposits equal to or less than JPY 100,000 will not be affected. Each deposit triggers its own 48-hour cooldown, so multiple deposits can lead to overlapping restrictions. The exchange clarified that “Quick Deposits” are excluded from this measure, as they already carry their own seven-day restriction on transfers.
bitFlyer stated that normal trading, holding, and deposit activities will remain available during each cooldown period. The restriction only targets outbound crypto transfers. The company described the measure as a focused effort to prevent newly deposited funds from being quickly sent to external addresses, a step aiming to curb common fraud patterns.
bitFlyer explained that customers can continue to trade and access other exchange services even when the cooldown applies. The policy aims to limit illicit fund movements without disrupting legitimate user activity.
User reactions and fraud prevention concerns
The crypto community is paying close attention to the fraud-prevention intent behind the Cooldown feature. Yuzo Kano, CEO of bitFlyer, highlighted a rise in suspicious phone calls impersonating the exchange, warning customers to verify requests via official channels before sharing any login or account details.
Industry observer Ale Aguero pointed out that the restriction only blocks outbound transfers, while functions such as trading, holding, and incoming transfers remain unaffected. Achivx referenced $17.4 million in stablecoin activity involving flagged addresses over a recent 30-day period, indicating that targeted transaction controls are becoming more common to address evolving threats.
The dynamic structure of the measure also drew comments, with Reinforce noting the risk of overlapping cooldowns for users who make several deposits within 90 days after verification. Some, including Macro Bombastic, described the 48-hour hold as a difficult wait, but acknowledged that it reflects the growing importance of fraud deterrence in Japan’s crypto sector.
Stricter regulatory environment in Japan
bitFlyer’s move is part of broader efforts in Japan to strengthen fraud controls on crypto exchanges. In August, the Financial Services Agency (FSA) and National Police Agency urged industry platforms to implement temporary withdrawal restrictions after large or unusual fiat or crypto deposits, step up transaction monitoring, and respond rapidly to suspicious activity.
Authorities have identified patterns such as unexpectedly large or frequent transactions, sudden withdrawals, and transfers to suspicious wallets as red flags that merit closer examination. In June, the FSA penalized moomoo Securities with a three-month freeze on new account openings after uncovering gaps in compliance, anti-money laundering (AML), and cybersecurity protocols.
Other exchanges, including Binance Japan, already use enhanced withdrawal questionnaires, real-time warnings about risky counterparties, and temporary limitations on certain transactions as part of risk-based controls. This marks a growing trend toward monitoring user behavior after account creation, going beyond a sole reliance on identity checks at onboarding.
Mini dictionary: Financial Services Agency (FSA), Japan’s government authority responsible for regulating the financial sector, including banks, securities, and cryptocurrency exchanges. The agency enforces compliance with laws on anti-money laundering, investor protection, and market integrity.
| Exchange | Transfer Restriction Trigger | Duration | Other Measures |
|---|---|---|---|
| bitFlyer | JPY deposit | 48 hours per deposit | Applies only to outbound transfers |
| Binance Japan | Risk assessment/questionnaire | Variable | Warnings for risky addresses |
| General (Japan) | As per FSA directives | Recommended temporary restriction | Enhanced transaction monitoring |
Japanese regulators focus on patterns such as unusually large transactions and transfers to suspicious wallets, compelling exchanges to apply stricter anti-fraud controls.
