According to reports, U.S. diplomats called Tokyo authorities to put more pressure on Japanese crypto-exchanges and miners in order to cut off all ties to Russia. The request was made to deepen Moscow’s financial isolation amid the ongoing Russian assault on Ukraine.
Washington Wants Japan’s Crypto Companies to Cut Ties, Further Isolate Russia
Japan is being urged by the United States of America to exert more pressure on any cryptocurrency exchanges or mining firms that are still working with Russians. U.S. officials want Japan to stop having business relationships with Russia. This will increase its isolation financially from the rest the world.
The request, made by American diplomats, is targeting several of Japan’s more than 30 licensed crypto trading platforms that are still present in the Russian Federation, the Financial Times revealed in an article on Friday, quoting people familiar with the matter.
Two sources informed that the U.S. officials told Tokyo to stop crypto mining activities with Japanese participation at Siberian Irkutsk Oblast. The region is known as Russia’s mining capital as it offers cheap hydroelectric power and a cool climate.
Other unidentified individuals, close to three exchanges, told the business daily that Japan’s Financial Services Agency (FSA) responded by renewing demands for the coin trading platforms to cut any remaining relationships with Russia.
FSA did not comment. The regulatory body requested that the FSA monitor all transactions and accounts involving assets transfers involving persons or entities subject to sanctions.
Even though the FSA didn’t direct the companies to stop working in Russia, several have. For example, crypto exchange Decurret said that it decided to suspend its activities in Russia after the FSA’s notice.
An ex-executive of another exchange confirmed the fact that Japanese exchanges face increased pressure to relocate any back-office or mining operations from Russia. An anonymous person, however, stated to the newspaper that they had information about at least one other exchange, which was able to maintain its Russian business through the establishment of a Singapore-based shell company for all payments.
The U.S. request comes after the introduction of changes to Japan’s Foreign Exchange and Foreign Trade Act introduced to cover cryptocurrencies and other digital assets. The amendments aim to strengthen Tokyo’s powers to restrict digital currency flows in and out of the country.
Are you sure that Tokyo’s authorities will convince Japanese cryptocurrency exchanges to end business relations with Russia? Comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is provided for educational purposes only. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or imply loss.
