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Advice to Japan’s crypto exchanges, work according to the sanctions imposed on Russia

Japan has advised its country’s crypto exchanges not to conduct transactions involving freeze crypto assets related to Russia and Belarus.

Due to the Russo-Ukraine war, all countries of the world including Europe and America are increasing sanctions on Russia. It has weakened Russia’s economy and currency. Now an attempt is being made to surround Russia with crypto sanctions. Japan on Monday advised its country’s crypto exchanges not to conduct transactions involving frozen crypto assets related to Russia and Belarus. This request has been made after a statement from G7 countries. The statement said that Western countries will impose costs on Russian actors who use digital assets to increase and transfer their wealth. 

According to a news agency report, the G7 countries believe that Russian companies and people can take the help of cryptocurrencies to avoid the financial sanctions imposed on Russia after the attack on Ukraine.  

The US Treasury Department said in a new guideline last Friday that US-based cryptocurrency firms should not engage in transactions with banned entities. Japan is also seen with America in this decision. A senior official of its Financial Services Agency (FSA) said that we are with the decision of G7. 

The FSA has said that unauthorized payments with targets can result in penalties or fines. This unauthorized payment includes cryptocurrencies as well as non-fungible tokens. In such a case, a jail term of up to three years or a fine of about Rs 6.5 lakh may be imposed. According to statistics, there are 31 crypto exchanges in Japan. 

Significantly, Russia and Ukraine are using cryptocurrencies extensively during the war. Funds received in the form of cryptocurrency are being used to buy basic things like food and fuel in Ukraine. The crypto asset is also being used to buy military equipment such as bullet-proof vests and night vision goggles for Ukrainian soldiers. Russian organizations have also increased the use of crypto, but they are facing blockades due to sanctions from Western countries. 

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Two Wheeler

BUSINESS AND FINANCE

Digit News