Japan urged crypto companies to comply with sanctions against Russia

The representatives of the platforms who fail to comply face up to three years in prison or a fine of 1 million yen ($8 482,5)

14.03.2022 - 12:15

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What’s new? The Japanese authorities have urged cryptocurrency exchanges not to process transactions subject to sanctions to freeze assets of Russian and Belarusian users. The country’s government has stated that it will strengthen measures against the transfer of funds using crypto assets that violate economic restrictions. This was stated by Japan’s Financial Services Agency (FSA) and the Ministry of Finance, Reuters reports.

Information on the Reuters website

What awaits violators? The companies' representatives who fail to comply face up to three years in prison or a fine of 1 million yen ($8 482,5), the FSA said. As of 4 March, there were 31 crypto exchanges registered in Japan.

What had happened before? The Japanese authorities decided to comply with sanctions against Russia following a statement by the Group of Seven (G7). It says that Western countries will impose restrictions against customers using digital assets to circumvent sanctions. Earlier, the US Treasury Department issued guidance that requires US cryptocurrency companies not to engage in transactions with sanction targets.

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