US diplomats have reportedly called on authorities 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 assault on Ukraine.
Washington wants Japanese crypto firms to cut ties and further isolate Russia
The United States has urged Japan to exert more pressure on cryptocurrency exchanges and mining companies that continue to work with the Russians. The United States wants Japanese entities to end commercial relations with Russia, adding to its financial isolation from the rest of the world.
The request, made by US diplomats, targets several of the more than 30 licensed Japanese crypto trading platforms that are still present in the Russian Federation, the Financial Times revealed in a report on Friday, citing people familiar with the matter. .
U.S. officials have told Tokyo to focus on halting crypto-mining operations with Japanese involvement in Siberia’s Irkutsk Oblast, two knowledgeable sources said. The region is known as the mining capital of Russia because it offers cheap hydroelectric power and a cool climate.
Other unidentified individuals, nearly three exchanges, told the business daily that Japan’s Financial Services Agency (FSA) responded by renewing demands for coin trading platforms to cut off any remaining relationship with Russia.
The FSA declined to comment on the post. In mid-March, the regulator instructed the exchanges it oversees to monitor all accounts and transactions involving the transfer of assets from any sanctioned person or entity.
Although the agency did not explicitly ask companies to shut down any Russia-related operations, some have already stopped working there. For example, crypto exchange Decurret said it decided to suspend operations in Russia after the FSA notice.
A former executive from another exchange has confirmed that Japanese exchanges are facing increased pressure to move all mining or back-office operations out of Russia. However, a person who chose to remain anonymous also told the newspaper that they know of at least one exchange that maintains operations in Russia by setting up a front company in Singapore to redirect all payments.
The US request comes after the introduction of changes to Japan’s foreign exchange and foreign trade law introduced to cover cryptocurrencies and other digital assets. The amendments seek to strengthen Tokyo’s powers to restrict the flow of digital currency into and out of the country.
Do you think Tokyo authorities will be able to convince Japanese crypto exchanges to cut trade ties with Russia? Tell us in the comments section below.
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