While financial authorities worldwide continue to target sanctioned Russian firms, Japan’s regulators and the country’s cryptocurrency association are working to identify and close loopholes that could be used to escape sanctions. However, the two organisations have stated that they are not considering the proposal to block all Russians.
Russian Users’ Blocking Requests Rejected
Japan’s Financial Services Agency (FSA) and the Japan Virtual and Crypto Assets Exchange Association have allegedly stated that they are examining measures to prevent sanctioned Russian firms from circumventing sanctions through the usage of cryptocurrency. Japan’s decision to target Russian cryptocurrency users comes on the heels of Tokyo’s penalties against Russian leaders, including President Vladimir Putin.
On the other hand, according to a report, the two sides are not discussing or debating a plan to restrict all Russian users. Rather than that, the article stated, the regulator is focusing on identifying ways to deter those who use cryptocurrency to circumvent sanctions.
As previously reported by Bitcoin.com News, some large cryptocurrency exchanges have refused to prohibit all Russian users as many as Ukrainian President Volodymyr Zelenskyy have demanded. Kraken, one of these exchanges, stated that it is not permitted to freeze the accounts of Russian clients absent a legal basis.
Sanctions Against Russia’s Effectiveness
Meanwhile, Bloomberg quotes Japanese Finance Minister Shunichi Suzuki as explaining to the country’s parliament how Tokyo is attempting to close loopholes that sanctioned Russians may use. As he stated:
We are actively monitoring settlements involving crypto assets and SPFS in order to ensure the effectiveness of sanctions against Russia.
Japan’s announcement that it intends to sanction sanctioned Russian businesses comes just days after many South Korean cryptocurrency exchanges acknowledged that they had begun “blocking users from nations with a high risk of money laundering.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
