US diplomats reportedly urged Tokyo officials to pressure Japanese crypto exchanges and miners to break ties with Russia. As Russia continued to assault Ukraine, a request was made to deepen Moscow’s financial isolation.
Washington wants Japanese crypto companies to break ties and further isolate Russia
The United States has urged Japan to put more pressure on crypto exchanges and mining companies that continue to work with Russia. The United States hopes that Japanese entities will end their business relations with Russia, thereby increasing their financial isolation from the rest of the world.
Requests by U.S. diplomats target some of Japan’s more than 30 licensed crypto trading platforms that still exist in the Russian Federation, the Financial Times is familiar with this issue in a Friday article. Clarified by quoting people.
A US representative told Tokyo to focus on stopping the cryptocurrency mining business with the participation of Japanese in the state of Irkutsk, Siberia, two knowledgeable sources said.This area is known as Russia Mining capital It offers cheap hydropower and a cool climate.
Other unidentified individuals are close to the three exchanges and the Financial Services Agency of Japan (FSA) Responded by updating the demand for a coin trading platform to break the rest of the relationship with Russia.
The FSA declined to comment on this publication. In mid-March, regulators requested exchanges to monitor accounts and transactions involving the transfer of sanctioned individual or group assets.
Authorities did not explicitly instruct companies to close their Russian-related businesses, but some have already stopped working there. For example, the cryptocurrency exchange DeCurret said it had decided to suspend operations in Russia after being notified by the FSA.
Former executives from another exchange confirmed that the Japanese exchange is facing strong pressure to relocate its mining or back office operations from Russia. However, one who chose to remain anonymous told the newspaper that he knew at least one exchange that maintained Russia’s business by establishing a shell company in Singapore to reroute all payments. ..
The US request comes after the introduction of changes to Japan’s Forex and Foreign Trade Law that were introduced to target cryptocurrencies and other digital assets. The amendment aims to strengthen Tokyo’s ability to limit the flow of digital currencies inside and outside the country.
Do you think the Tokyo authorities can persuade the Japanese cryptocurrency exchange to break its business relationship with Russia? Please let us know in the comments section below.
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