US urges Japan to halt cryptocurrency transactions with Russia

Diplomats in Washington have pointed out that a number of Japanese companies continue to work with the Russian Federation through a network of subsidiaries

08.07.2022 - 10:00

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What’s new? The US has urged Japan to increase pressure on local cryptocurrency exchanges and mining companies to stop financial transactions with Russia. According to Financial Times, citing sources, diplomats in Washington have asked Tokyo to focus on stopping cryptocurrency mining in the Irkutsk region, providing information on Japanese mining companies that continue to operate in the Russian Federation.

Material by Financial Times

More details about Japanese sanctions. On March 14, the Japanese financial regulator urged exchanges to monitor and block any accounts and transactions related to sanctioned individuals. Those who fail to comply face up to three years in prison or a fine of 1 million yen ($7362).

Although the request did not explicitly require companies to stop working with Russia, some companies took it that way. However, other exchanges and mining companies have set up networks of subsidiaries to continue operating in the Russian Federation, which is what US diplomats pointed out in a new appeal.

In late March, Japanese Prime Minister Fumio Kishida said that the government intended to extend the foreign exchange law to cryptocurrency exchanges, they, like banks, will be obliged to require verification that the recipient of the funds is not under sanctions.

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