Japan Looks to Stop Sanctioned Russian Entities From Transferring Crypto Assets – Regulation Bitcoin News

As financial authorities around the world continue to target sanctioned Russian entities, regulators in Japan along with the country’s crypto association are attempting to find and close gaps that may be used to circumvent sanctions. However, the two organizations have stated that they do not plan on blocking all Russians.

Japan’s Financial Services Agency (FSA) and the Japan Virtual and Crypto Assets Exchange Association have reportedly said they are trying to find ways of stopping blacklisted Russian entities from evading sanctions via the use of cryptocurrencies. Japan’s move to target Russian cryptocurrency users has come shortly after Tokyo imposed sanctions on Russian officials including the country’s President, Vladimir Putin.

A report suggests that they are not discussing or deliberating about a plan to ban all Russian users. The report stated that the regulator was focused on stopping anyone who uses cryptocurrency to avoid sanctions.

Bitcoin.com News has reported previously that major cryptocurrency exchanges refuse to block Russian users. This was a demand by many, including the Ukrainian President Volodymyr Zelenskyy. Kraken said that it can’t freeze Russian client accounts without a lawful requirement.

The effectiveness of sanctions against Russia

Meanwhile, a Bloomberg report quotes the Japanese Finance Minister Shunichi Suzuki who explains to the country’s parliament how Tokyo is working to plug loopholes that may be exploited by sanctioned Russians. He stated:

In order to ensure that our clients are secure, we closely monitor the settlements of crypto assets and SPFS. [the]Effectiveness of Russia sanctions

Revelations that Japan is planning to block sanctioned Russian entities are coming just a few days after some South Korean cryptocurrency exchanges confirmed that they are now “blocking users from countries that are at high risks of money laundering.”

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Terence Zimwara

Terence Zimwara was a Zimbabwean award-winning journalist and writer. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.