As financial authorities around the world continue to target sanctioned Russian businesses, Japanese regulators and the country’s crypto association are seeking to identify and address vulnerabilities that could be used to avoid sanctions. The two organizations, however, have stated that they are not considering the idea to bar all Russians.
Calls to block Russian users have been rejected.
According to reports, Japan’s Financial Services Agency (FSA) and the Japan Virtual and Crypto Assets Exchange Association are attempting to prevent banned Russian firms from avoiding sanctions through the usage of cryptocurrency. Japan’s decision to target Russian cryptocurrency users comes only days after Tokyo imposed penalties on Russian officials, including President Vladimir Putin.
However, according to a report, the two parties are not discussing or considering a plan to restrict all Russian users. Instead, the regulator, according to the article, is focused on developing ways to prohibit anyone who utilizes cryptocurrencies to avoid sanctions.
Some big cryptocurrency exchanges have refused to restrict all Russian users, as many people, including Ukrainian President Volodymyr Zelenskyy, have urged. Kraken, one of these exchanges, stated that it cannot freeze the accounts of Russian clients until there is a legal obligation to do so.
Sanctions Against Russia: How Effective Are They?
Meanwhile,Japanese Finance Minister Shunichi Suzuki as explaining to the country’s parliament how Tokyo is attempting to close loopholes that sanctioned Russians could exploit. He stated:
We are closely monitoring settlement issues such as crypto assets and SPFS in order to ensure the effectiveness of sanctions against Russia.
The news that Japan intends to restrict sanctioned Russian firms comes just days after certain South Korean cryptocurrency exchanges acknowledged that they are now “blocking users from nations that are at high risk of money laundering.”