Japan eyes customer safeguards against fall of foreign crypto exchanges

TOKYO -- Japan's financial watchdog looks to put legal curbs in place to prevent foreign cryptocurrency exchanges from taking domestic assets overseas if they collapse, in an effort to protect retail investors.

The Financial Services Agency aims to create an "asset retention order" under the legislation governing these exchanges, which would allow it to bar them from transferring assets from Japanese customers out of the country. The idea will be discussed Thursday by a working group under the agency's Financial System Council.