Japan has been slow to adopt stronger regulations on private digital currencies.
According to an industry body, 31 exchanges were operating in Japan on March 4.
Monday, Japanese authorities issued an order instructing crypto exchanges to stop processing transactions involving assets frozen by the United Nations Security Council because of the conflict in Ukraine. The recent update is an effect since Group of Seven (G7) nations issued a statement concerning Russians utilizing digital assets.
The statement read:
“will impose costs on illicit Russian actors using digital assets to enhance and transfer their wealth.”
Russia’s use of cryptocurrencies as a way around sanctions placed on the nation for its invasion of Ukraine is a rising issue among the G7 major countries. As of Friday, crypto businesses based in the United States are prohibited from engaging in transactions with sanctioned individuals and entities, as per new guidelines from US Treasury Department.
Strict Penalties Imposed
The Ministry of Finance and the Financial Services Agency (FSA) of Japan have announced a joint statement announcing new steps to prevent the transfer of funds using crypto assets that violate penalties. Japan has been slow to adopt stronger regulations on private digital currencies, but G7 and G20 countries have all urged for more regulation of “stablecoins.”
According to the FSA, unauthorized transfers to sanctions-related targets, including via crypto assets, may result in up to three years in jail or a fine of 1 million yen ($8,487.52). According to an industry body, 31 crypto exchanges were operating in Japan on March 4. Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States are members of the G7. In all talks, the EU acts as a guest, represented by the European Council and the European Commission.