Japan Asks Crypto Exchanges to Cancel Russian Sanction Related Transactions

blockchain.news:

Following concerns from the Group of Seven (G7) nations, Japan has requested crypto exchanges to cancel transactions of crypto assets that are subject to asset-freeze sanctions against Russia and Belarus, Reuters reported citing national officials.

Concerns among the G7 economies have been growing as they believe that the Russian government is using cryptocurrencies to tackle financial sanctions imposed upon the country for invading Ukraine.

Last Friday, the G7 released a statement saying Western nations “will impose costs on illicit Russian actors using digital assets to enhance and transfer their wealth.”

Currently, there are 31 crypto exchanges in Japan, according to an industry association.

According to Reuters, Japan’s request also came following the issuance of new guidance by the US Treasury Department that has asked US-based cryptocurrency firms to stop transactions with sanction targets.

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

In a joint statement, Japan’s FSA and the Ministry of Finance said that strong measures will be imposed against the transfer of funds using crypto assets that would be in violation of the sanctions.

The FSA further added that illegal payments to sanctioned targets will be punished with three years prison sentences or a 1 million yen ($8,487.52) fine. Payments under surveillance also include crypto assets — such as cryptocurrency and non-fungible tokens — the FSA added.

Russia has seen the further suspension of payment methods due to its war with Ukraine.

According to a March 7, 2022, report by Blockchain.News, more payment operators have followed the orders of sanctions