Top government officials said on Monday that Japan will review legislation involving cryptocurrencies to prevent Russia from escaping Western financial sanctions after Moscow invaded Ukraine. The government plans to require crypto-asset exchange service providers to verify that individuals or groups to whom crypto assets are transferred are not subject to sanctions against Russia. What is included in the new version? Here are the details…
Amendment to the law covering cryptocurrencies in Japan
Cabinet Chief Secretary Hirokazu Matsuno, at a press conference, told the government the current parliamentary session to strengthen Russia’s protections against possible sanctions through digital assets. He said he would present a revision of the Foreign Exchange and Foreign Trade Act. Prime Minister Fumio Kishida also stressed the need for coordinated actions with Western allies after attending the Group of Seven summit in Belgium last week.
According to information in Reuters, a finance ministry official said that discussions about the proposed change were ongoing and could not provide further details. Mizuho Research and Technologies senior economist Saisuke Sakai said the revision “probably forces the government to apply the law to crypto-asset exchanges such as banks and examine whether their clients are Russian sanctions targets.”
Sanctions are being imposed on Russian oligarchs
As we have previously reported as Kriptokoin.com, after the occupation of Ukraine, like many countries, the Japanese government has more than 100 Russian officials, oligarchs, banks and other authorities. imposed asset freeze sanctions on corporations. Japan has also banned high-tech exports and revoked its most-preferred country trade status for Russia, describing its actions in Ukraine as a “special military operation.”
Earlier this month, Japan’s financial regulator requested that nearly 30 crypto exchanges in the country not conduct asset transactions with those targeted by the sanctions. The revision of the legislation is a stronger step towards the implementation of such regulations. According to economist Sakai, the Kishida government developed its legislative overhaul plan, likely due to stricter rules from Western authorities on the matter and high Japanese public support for imposing sanctions on Russia. As it is known, Russia mostly imported technological products from Japan.
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