Japan's financial regulator is cooking up something interesting—a mandatory "liability reserve" system for every crypto exchange operating there. Think of it as a safety net: if your exchange gets hacked, you're guaranteed to get your funds back.

Why now? Mt. Gox still haunts the industry. Years later, victims are still waiting on repayments. That mess taught regulators one brutal lesson: even seemingly robust systems can crumble when shit hits the fan.

The FSA isn't messing around this time. They want exchanges to park enough reserves to cover potential losses before disaster strikes, not after. It's a shift from reactive cleanup to proactive defense—forcing platforms to actually prove they can handle worst-case scenarios.

Some might call it overreach. Others see it as Japan finally learning from past mistakes. Either way, this could set a precedent for how other countries tackle exchange security going forward.