Japanese Crypto Exchanges Must Support Sanctions Imposed Against Russia

The Japanese government has required local crypto exchange companies not to process transactions with digital assets that are subject to sanctions against Russia and Belarus, Reuters has reported citing officials.

The Japanese Financial Services Agency (FSA) and the country’s Ministry of Finance have said in a joint statement the government will step up measures to curb the transfer of funds using cryptocurrencies in violation of sanctions.

According to the FSA, violators will face penalties of up to three years in prison or a fine of 1 million yen. As of March 4, 31 crypto exchanges were operating in the country.

The announcement has come after Friday the G7 countries expressed their concerns about the possible use of cryptocurrencies by Russian companies to evade sanctions imposed against them.

At the same time, the head of the FBI, Christopher Wray, had earlier said the ability of Russians to circumvent sanctions with the help of cryptocurrencies is greatly overestimated.