Japan Preparing To Fill Potential Crypto Loopholes In Russia Sanctions

The Russian invasion of Ukraine has brought many problems for the whole world. The US, UK, EU, and other countries have applied measures to curb the Russian economy. After damaging the traditional markets, the Union of different countries is now aiming with sanctions at the Cryptocurrency and NFT markets in Russia. In this bid, Japan’s financial regulator and Virtual and Crypto Assets Exchange Association (JVCEA) have reportedly started working over it.

How Japan will enable crypto sanctions?

The allies have already made some moves in reply to the Russian invasion of Ukraine. The steps taken by them have restricted Russia’s economy, access to technology, and cryptocurrency market. Now, Japan government is having discussions with the watchdogs to evaluate how sanctions can be implemented effectively against Russia.

The JVCEA and Japan’s financial regulator are now analyzing different effective ways to block the transfer of crypto assets on the nation’s sanctions list.

However, the dialogue currently does not include any proposal to shut off access for all Russian clients, reports The Japan Times.

How it can impact Russia’s crypto industry?

The sanction imposed by the allies has already blocked Russian banks from the SWIFT global payment network. This move has sent the Russian Ruble down by more than 30%. Now, one can easily sense what attacking Russia’s cryptocurrency market with potential sanctions can do.

We are closely watching the situations of settlements such as crypto assets and SPFS in order to secure the effectiveness of sanctions against Russia, said Japan’s Finance Minister Shunichi Suzuki, reports The Japan Times

While, JVCEA head Satoshi Hasuo has said that ‘We’ll work with the Financial Services Agency to consider what specific measures are possible’, reports Nikkei Asia

As per reports, Russians have invested around 5 trillion rubles ($46.6 billion) in cryptocurrency while the country is the third-largest crypto miner after U.S. and Kazakhstan. By applying more effective sanctions on Russia’s crypto industry, the union of some nations will surely aim for total destruction of it.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]