The US pressures Japan to cut crypto ties with Russia
U.S. According to reports, diplomats in the U.S. have called Tokyo authorities to put more pressure on Japanese crypto-exchanges and miners to cut all ties to Russia. This was done to increase Moscow’s financial isolation in the face of ongoing Russian aggression on Ukraine.
The United States has asked Japan to increase pressure on cryptocurrency exchanges, and mining companies that work with Russians. The U.S. is asking Japanese entities to stop business relationships with Russia. This will increase Japan’s financial isolation from the rest the world.
American diplomats requested that the request be made to several Japanese crypto trading platforms, which are still licensed in Russia. The Financial Times reported Friday that the Financial Times cited people who were familiar with the matter.
Two sources familiar with the matter said that U.S. representatives advised Tokyo to stop crypto mining operations with Japanese participation at Siberian Irkutsk Oblast. Because of its low cost hydroelectric power, and the cool climate, this region is called Russia’s Mining Capital.
Unidentified people, who were close to three exchanges, also told the business daily Japan’s Financial Services Agency ( FSA) that they had responded to the renewed demands from the coin trading platforms for Russia to end any remaining relations with Russia.
The FSA declined to comment on the publication. The regulatory body requested that the exchanges it supervises monitor transactions and accounts involving assets transfer by any person or entity subject to sanctions.
Although the FSA did not direct companies to shut down any Russia-related businesses, many have. Decurret, a crypto exchange, stated that it had decided to cease all activities in Russia following the FSA’s notice.
An ex-executive of another exchange confirmed that Japanese exchanges face increased pressure to relocate any mining or back office operations out of Russia. One anonymous source said that they knew of at most one exchange that kept its Russian business alive by setting up a Singapore shell company to route all payments.
After Japan’s Foreign Exchange and Foreign Trade Act was amended to include cryptocurrencies and other digital assets, the U.S. requested that it be reviewed. These amendments will strengthen Tokyo’s ability to limit digital currency flows into and out of the country.