As the war in Ukraine goes on, countries around the world continue to sanction Russia. Japan is now planning to install restraints on crypto transactions from Russia and Belarus in order to isolate the aggressors from the global financial system.
After the meeting held on the 11th of March, the leaders of G7 – the seven most politically influential countries in the world – released an agreement to maintain restrictive sanctions, prevent evasion of the Russian capital, and close the openings through which capital could be removed.
The details of the G7 statement were revealed to be:
“Specifically, in addition to other measures planned to prevent evasion, we will ensure that the Russian state and elites, proxies and oligarchs cannot leverage digital assets as a means of evading or offsetting the impact of international sanctions.”
Following the statement’s release, Japanese authorities demanded that their local crypto exchanges cease processing crypto transactions of Russian and Belarusian origins.
Currently, there are 31 cryptocurrency exchanges in Japan, including the popular bitFlyer, Bitbank, and Coincheck.
Unapproved transactions made to sanctioned entities will be considered a violation under Japanese law, which could result in up to three years of prison time, or a fine of one million yen fine, equivalent to $8,487 USD.