Japan will start tracking attempts to evade sanctions through cryptocurrencies

The country’s government will revise the foreign exchange law to include cryptocurrency exchanges

29.03.2022 - 11:10

345

1 min

What’s new? Japan plans to change the legislation to strengthen sanctions against Russia. The country’s Prime Minister Fumio Kishida has stated that the government will revise the foreign exchange law, it will now be enforced by cryptocurrency exchanges, the local publication Sankei reports.

Sankei’s material

How will the new rules work? Under the current Japanese legislation, the banks require verification that the recipient of the funds is not under sanctions. An exception is made for companies that are engaged in digital asset transactions. The Japanese government will oblige cryptocurrency exchanges to undergo the same procedure.

“Due to the concern that allowing free conversion into crypto assets will become a loophole to circumvent sanctions, we are preparing to submit to parliament a revision of the foreign exchange act to further strengthen the effectiveness of sanctions,” Kasida claims.

Earlier, the Japanese government urged crypto companies to comply with restrictions 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.

Author: