Japan’s Financial Services Agency said on Oct. 9 that financial institutions should tighten cybersecurity controls and enforce stricter standards for remote identity verification. The agency urged covered entities not to wait until the planned April 1, 2027 abolition of ID image transmission methods takes effect, and instead move as soon as possible to verification methods that read information directly from IC chips embedded in identity documents. The warning was issued against a backdrop of ongoing unauthorized access incidents affecting customer-facing internet services and business systems. The FSA also said the requirement applies to cryptocurrency exchanges because they are classified as “financial institutions, etc.” under its cybersecurity guidelines. Another factor behind the push is the online leakage of identity document images, including driver’s licenses, according to the agency.
Japan’s Financial Services Agency (FSA) issued a warning on Oct. 9 calling on financial institutions to strengthen cybersecurity measures and tighten remote identity verification procedures.
The agency said covered entities should not wait for the scheduled April 1, 2027 abolition of identity document image transmission methods to take effect. Instead, it urged them to transition as soon as possible to verification methods that read information from IC chips.
Crypto exchanges are included
The requirement also applies to cryptocurrency exchanges. The FSA said they are categorized as “financial institutions, etc.” under its cybersecurity guidelines.
Why the agency is pushing for an early shift
According to the FSA, the move comes as unauthorized access incidents continue to affect customer-facing internet services and business systems.
The agency also pointed to online leaks of identity document images, including driver’s licenses, as one of the factors behind the accelerated transition. CoinPost first reported the update.
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