Japan Considers Stricter Crypto Regulations in Light of Russia Sanctions

Japan Considers Stricter Crypto Regulations in Light of Russia Sanctions – Concerns that Russia’s elites would use cryptocurrencies to evade international sanctions have prompted Japanese officials to tighten rules on cryptocurrency exchanges.

The platforms will be forced to check if transaction receivers are subject to financial restrictions imposed in response to Moscow’s invasion of Ukraine.

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According to government sources published by Japan Today, the duty will be implemented through modifications to the country’s foreign exchange and commerce law.

According to the publication, the modification intends to deny sanctioned individuals and entities the ability to transfer crypto assets to a third-party account.

Also Read: Vietnamese Government and Central Bank Developing Legal Framework for Crypto

Russia has been hit with unprecedented sanctions that have limited its access to the global financial system as well as its foreign currency and gold reserves.

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Russian officials are reportedly interested in cryptocurrencies and are even willing to take bitcoin for energy exports, according to reports. In Moscow, support for cryptocurrency legalization is building, and lawmakers and experts are striving to create a complete regulatory framework.

The Japanese government had previously requested crypto trading platforms to increase monitoring and to notify financial authorities of any questionable transactions that would violate restrictions.

The Financial Services Agency (FSA) and the Japan Virtual and Crypto Assets Exchange Association are apparently looking into ways to prevent Russian firms from evading sanctions, while excluding the blocking of all Russian users.

Also Read: Ukraine Pushes for Membership in European Blockchain Partnership

Banks are currently required by Japanese law to examine if the receivers of money transactions are subject to any limitations, but cryptocurrency exchanges are not.

Prime Minister Fumio Kishida of Japan indicated on Monday that the government is preparing to introduce the necessary reforms during the current legislative session.

Members of the crypto sector have had a variety of reactions to the turmoil in Ukraine. While South Korean exchanges blocked Russian access, major global platforms such as Binance and Kraken resisted the Ukrainian government’s proposal to unilaterally ban all Russian users’ accounts.

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