More Crypto Scrutiny Ahead as Japan Closes Russia Sanctions Loophole

29th March 2022
More Crypto Scrutiny Ahead as Japan Closes Russia Sanctions Loophole
Image credit: Masaaki Komori on Unsplash

Japan is amending its foreign exchange law which currently has a loophole that allows Russia to evade sanctions with cryptocurrency.

Since Russia’s invasion of Ukraine, Japan has frozen assets of over 100 Russian officials, banks and institutions, as well as banning high-tech exports.

Earlier this month, Japan ordered cryptocurrency exchanges to comply with sanctions against Russia.

The Japanese government is now vowing to strengthen sanction protections by revising its Foreign Exchange and Foreign Trade Act.

Prime Minister Fumio Kishida called for the law to be amended on Monday, stressing the need to coordinate with Western allies who convened at last week’s Group of Seven summit in Belgium.

Details have not yet been announced by the finance ministry but the revision “presumably enables the government to apply the law to crypto-asset exchanges like banks and oblige them to scrutinise whether their clients are Russian sanction targets”, said Saisuke Sakai, senior economist at Mizuho Research and Technologies.

Written by Bread News Team
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