Diplomats from the US have called on Tokyo to put pressure on Japanese crypto dealers. The focus is on miners and crypto exchanges to cut ties with Russia. The call is geared toward tightening Russia’s financial exposure over the war in Ukraine.
Washington Demands Japan Crypto Companies Boycott Russia
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The US demanded that Japan ensures no cryptocurrency firm works with any Russian interest. The US further demanded that other Japanese businesses end their dealings with Russia forthwith. This, the US believes, will further isolate Russia from other countries of the world.
The US demand, as convened by diplomats, targets Japanese licensed crypto platforms. There are over 30 of them still present and doing business in Russia.
The US diplomats asked Tokyo to put effort into stopping the crypto mining with Japanese engagement. They claimed this operation goes on in the Siberian Irkutsk region. Sources have verified the authenticity of the claim.
The region is regarded as the mining capital of Russia. The reason is the cheap HEP it offers as well as the area’s cold climate.
Some anonymous individuals with ties with three crypto exchanges gave some information. They said the Financial Services Agency of Japan has asked the platforms to comply. Crypto trading platforms have been requested to cut any remaining ties with Russia.
Intense Pressure On Japanese Exchanges
The Financial Services Agency declined requests to make publishable comments. The agency gave a directive in March for exchanges to monitor transactions. They were to report anyone involving assets transfers to entities under sanction.
The agency did not, as of then, ask firms to close their operations in Russia. Some, however, had already stopped their operations there. Decurret crypto exchange is an example of such.
A past executive of an exchange said Japanese exchanges are undergoing intense pressure. They are asked to move their mining and office activities away from Russia.
An anonymous informant said there is at least one exchange that maintains its business with Russia. They said the exchange set up a shell company in Singapore through which they reroute every payment.
The US demand is coming after Japan amended its Foreign Exchange and Trade Act. It was introduced to include cryptocurrencies and other digital assets. The amendment plans to help Tokyo control digital currencies and their flow in and out of Japan.