US diplomats have reportedly called on officials in Tokyo to increase pressure on Japanese crypto exchanges and miners to sever ties with Russia. The request was made to deepen Moscow’s financial isolation amid the ongoing Russian offensive on Ukraine.
Washington wants Japan’s crypto companies to cut ties, further isolate Russia
The United States has urged Japan to put more pressure on cryptocurrency exchanges and mining companies that continue to work with the Russians. The US wants Japanese entities to end their trading ties with Russia, thus increasing its financial isolation from the rest of the world.
The request, made by US diplomats, is targeting more than 30 licensed crypto trading platforms from Japan that still exist in the Russian Federation, the Financial Times revealed in an article on Friday, citing people familiar with the matter.
Two informed sources said the US representatives asked Tokyo to focus on stopping crypto mining operations with Japanese participation in the Siberian Irkutsk Oblast. The region is known as the mining capital of Russia because it offers cheap hydroelectric power and a cool climate.
Other unnamed individuals, close to the three exchanges, told the business daily that Japan’s Financial Services Agency (FSA) responded by renewing the coin trading platform’s demands to cut off any remaining ties with Russia.
The FSA declined to comment for publication. In mid-March, the regulatory body asked exchanges to monitor any accounts and transactions that involved the transfer of assets of any person or entity placed under sanctions.
Although the agency did not explicitly instruct the companies to cease any operations related to Russia, some have already ceased to operate there. For example, crypto exchange Dicurate said that it decided to suspend its activities in Russia following a notice from the FSA.
A former executive of another exchange has confirmed that Japanese exchanges are facing intense pressure to move any mining or back-office operations out of Russia. However, a person who opted to remain anonymous also told the newspaper that they knew of at least one exchange that had started its Russian business by setting up a shell company in Singapore to re-route all payments. has been maintained.
The US request comes after the introduction of changes to Japan’s Foreign Exchange and Foreign Trade Act introduced to cover cryptocurrencies and other digital assets. The amendments are intended to strengthen Tokyo’s powers to restrict digital currency flows in and out of the country.
Do you think Tokyo officials will be able to convince Japanese crypto exchanges to cut business ties with Russia? Tell us in the comments section below.
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