Japan Becomes Latest in Asia to Enforce Crypto Compliance With Russia Sanctions

15th March 2022
Japan Becomes Latest in Asia to Enforce Crypto Compliance With Russia Sanctions
Image Credit: John Cameron

Japan is the latest country in Asia to order cryptocurrency exchanges to comply with sanctions against Russia, according to a report by Reuters.

On Monday, Japanese authorities told exchanges to not process crypto transactions that fall in line with those sanctioned against Russia.

The move comes following a G7 statement on Friday in which western nations declared to “impose costs on illicit Russian actors using digital assets to enhance and transfer their wealth.”

Growing concerns are stemming from Russian entities using cryptocurrencies as a loophole around sanctions imposed against them by western counterparts for invading Ukraine.

“We decided to make an announcement to keep the G7 momentum alive”, said a senior official at Japan’s Financial Services Agency, Reuters reported. “The sooner the better”.

The FSA added that unauthorised payments are subject to punishment of up to three years in prison or a 1 million yen (US$8,447) fine. As of 4 March there were 31 crypto exchanges in Japan.

Singapore and South Korea have both taken measures to order cryptocurrencies to comply with sanction against Russia.

Last week, Singapore banned all local financial institutions from conducting transactions with sanctioned Russian banks, with sanctions also covering cryptocurrency transactions, nonfungible tokens and other digital assets.

South Korea blocked several IP addresses of cryptocurrency exchanges or Russian users as part of their. sanctions.

Meanwhile, Thailand is considering adopting cryptocurrency as an alternative payment option for Russian tourists who were restricted by the sanctions.

Written by Bread News Team
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