Authorities in Japan plan to introduce stricter new rules for crypto market operators as part of efforts to prevent Russia from using cryptocurrencies to circumvent sanctions. The legislative initiative came after Tokyo asked crypto exchanges to further strengthen transaction monitoring this month.
Amid concerns that Russia and its elites may use cryptocurrencies to circumvent international sanctions, Japanese authorities are expected to tighten rules for cryptocurrency exchanges. Crypto exchanges now need to confirm whether the recipient of the transaction is subject to financial restrictions or not.
The measure will be introduced through amendments to Japan’s national foreign exchange and trade laws based on sources from Japan Today. The authentication is also intended to prevent individuals and parties involved from transferring cryptocurrencies to third party accounts.
As is well known that Russia is currently facing economic sanctions imposed by various parties that have restricted its access to global financial markets and its reserves in foreign currency and gold. Waima so there are reports revealing that Russian officials are interested in cryptocurrencies and are even willing to accept bitcoin for oil exports. Support for cryptocurrency authentication is growing in Moscow while lawmakers and experts are working to adopt a comprehensive regulatory framework.
The Financial Services Agency (FSA) and the Japan Virtual and Crypto Asset Exchange Association are reportedly looking for ways to prevent Russia from circumventing sanctions but not blocking all Russian users.
Reactions to the conflict in Ukraine are different among players of the crypto industry. South Korean exchanges chose to block Russian access, while major global crypto exchanges such as Binance and Kraken rejected the Ukrainian government's request to unilaterally freeze the accounts of all Russian users.
