US diplomats have called on the Tokyo authorities to intensify pressure on Japanese crypto exchanges and miners to sever all ties with Russia. The request was aimed at deepening Moscow’s financial isolation amid the ongoing Russian offensive on Ukraine.
The United States has urged Japan to put more pressure on cryptocurrency exchanges and mining firms that continue to do business with the Russians. The United States wants Japanese organizations to end their trade relations with Russia, further isolating the country’s financials from the rest of the world.
The request by US diplomats also targets several of the more than 30 licensed Japanese crypto trading platforms still in the Russian Federation, as it was revealed. financial times From his Friday article that cites people familiar with the matter.
Two sources familiar with the matter said that US officials have asked Tokyo to focus on halting Japan’s crypto-mining operations in Siberia’s Irkutsk region. The area is known as the mining capital of Russia because it offers cheap water power and a cool climate.
Japan’s Financial Services Agency (FSA) declined to comment on the financial news site on the matter. In mid-March, the regulator required the exchanges it oversees to verify the accounts and transactions of sanctioned persons or entities to whom assets are transferred.
While the agency has not specifically ordered the companies to shut down all Russia-related activities, some have already closed their operations. Crypto Exchange Decurret, for example, announced that it has decided to suspend its operations in Russia after being notified by the FSA.
A former head of another exchange confirmed that Japanese exchanges are under increasing pressure to move all mining or back-office operations out of Russia. However, a person who spoke on condition of anonymity told the newspaper that he also knew of at least one exchange that has maintained its Russian operations by setting up a front company in Singapore to route all payments there.
The US request comes after Japan made changes to its foreign exchange and foreign trade law covering cryptocurrencies and other digital assets. The amendments aim to strengthen Tokyo’s authority to limit the flow of digital currency in and out of the country.
