Russia is still the subject of Western economic sanctions, which have now been extended to the cryptocurrency industry, more than four months after the invasion of Ukraine. Additionally, the United States makes sure that its friends continue to apply pressure to the nation governed by Vladimir Putin. In order to put more pressure on cryptocurrency exchanges that are still in contact with the Russians, they have just encouraged Japan to follow suit.
The request has an impact on more than 30 local cryptocurrency exchanges.
The request from American diplomats seeks to completely sever all business ties between Japan’s crypto exchanges and their partners in Russia. It also pertains to Russian mining firms, specifically those in the Irkutsk, Siberian Oblast. Particularly well-known for its inexpensive hydroelectric power and a cool climate that are favorable to this activity are this region. The Financial Times broke the news on Thursday, stating that Washington wants to further isolate Moscow economically.
The Financial Services Agency (FSA), the local regulator, declined to confirm the existence of such a request from US diplomats. According to The Journal, there would thus be more than 30 cryptocurrency exchanges registered in Japan that would also be active through a subsidiary in Russia. The latter would also be in violation, he continues, as the land of the rising sun has already taken action for months by advising the exchanges to freeze Russian assets.
Tighter controls on the transfer of digital currency in Japan
Japanese authorities significantly altered local foreign commerce laws even before the Financial Times disclosures. These now include cryptocurrencies, enabling Tokyo to further impose restrictions on the export of digital money. Therefore, the request from American diplomats would be an effort to put pressure on Japan to implement these new policies as soon as feasible.
Although the idea that cryptocurrency may be used to get around economic penalties has been refuted, the United States does not want to take a chance. They anticipate that other economic giants would follow suit in order to provide Russia, which is preparing to legalize stablecoins, with as few alternatives as possible.
Source: Bitcoin News
