Japan Intends To Strengthen Cryptocurrency Exchange Regulations In Order To Impose Punishment

A government official announced on Monday that Japan aims to revise its Foreign Exchange and Foreign Trade Act to bring cryptocurrency exchanges under the jurisdiction of banking rules. The proposed modification is being implemented to prohibit sanctioned countries from utilizing digital assets to evade sanctions.

In a news conference, Chief Cabinet Secretary Hirokazu Matsuno stated that the government intends to present a measure to amend the Foreign Exchange Laws to include crypto exchanges.

Fumio Kishida, the country’s freshly elected prime minister, backed the proposed modification and asked for coordinated enforcement efforts with Western allies.

Crypto exchanges, like banks, will be compelled to check and flag transactions involving sanctioned Russian persons or entities under the amended foreign exchange legislation.

Following Russia’s actions in Ukraine, Japan, along with the majority of its Western partners

Imposed various financial sanctions on the country. The country’s financial regulatory body also urged crypto exchanges to stop facilitating transactions for sanctioned targets earlier this month.

A parliamentary amendment to the law, on the other hand, would make it mandatory for crypto exchanges to prohibit transactions for sanctioned Russian officials, oligarchs, banks, and other institutions.

The country’s rising interest in the crypto market, as well as recent comments made by Russian ministers, are the source of fear that Russia may try to avoid sanctions by using bitcoin.

Russia has been obliged to seek alternate payment channels and means to enter the world commerce market as a result of financial sanctions. While one of the hottest subjects of conversation has been the potential use of digital assets to dodge trade sanctions, experts have dismissed such concerns as “completely unjustified.”

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