US Urges Japan to Shut Crypto Firms with Russia Links: Escalating Pressure Amid Ukraine Conflict
The United States government has urged the Japanese government to increase pressure on crypto exchanges and miners who have links with Russia, according to a recent report. This move signifies a growing concern over potential circumvention of sanctions through cryptocurrency. Officials representing the United States government have reportedly urged Japan’s licensed cryptocurrency exchanges to stop doing business with Russia, seemingly as part of a wider effort to isolate Russia economically.
According to the Financial Times, U.S. diplomats have reportedly called on authorities in Tokyo to increase pressure on Japanese crypto exchanges and miners to sever links to Russia. The American diplomats' request targeting Japan’s more than 30 licensed crypto trading platforms that are still present in Russia highlights the significant role Japanese firms play in the global crypto landscape.
The pressure comes as TOKYOJapanese authorities ordered crypto exchanges on Monday not to process transactions involving crypto assets subject to asset-freeze sanctions against entities with ties to Russia. These orders reflect a growing international effort to prevent Russia from using cryptocurrency to evade financial restrictions imposed in response to the ongoing conflict in Ukraine.
The US asked Japan to increase pressure on its cryptocurrency exchanges and miners to sever ties with Russia amid the Ukraine conflict, the Financial Times reported on [Date]. This request is part of a broader strategy to ensure that sanctions are effective and that Russia cannot access alternative financial channels to fund its war efforts.
The U.S. Department of Treasury has sanctioned thirteen firms and two individuals in a fresh round of scrutiny. The sanctioned parties allegedly developed or offered services allowing for potential sanctions evasion. Japanese authorities ordered cryptocurrency exchanges not to conduct transactions involving crypto assets that are subject to asset-freeze penalties imposed on [entities].
This development underscores the increasing scrutiny and regulation surrounding cryptocurrency, particularly in relation to international sanctions and geopolitical tensions. The U.S. pressure on Japan to curtail crypto ties with Russia signifies a proactive approach to prevent financial loopholes and ensure the effectiveness of economic measures.