Since Monday, March 14, the Japanese government has banned any transactions with crypto assets, the participants of which are subject to sanctions restrictions.
The country’s government is stepping up measures against the transfer of funds in violation of sanctions, the Ministry of Finance (JMF) and the Financial Services Agency (FSA) said in a joint statement.
On Friday, the US Treasury Department demanded that American cryptocurrency companies not participate in transactions between those on the sanctions list, including those from Russia. The Japanese government supported the US sanctions and the initiative of the Big Seven (G7).
“The move comes in response to Friday’s statement in which Western countries announced they would apply sanctions. We have decided to make a similar announcement to support the momentum of the G7,” the FSA spokesman explained.
Under the FSA’s order, unauthorized payments to sanctioned individuals, including through the use of crypto-currency assets, will result in a penalty of up to three years in prison and/or a fine of ¥1 million ($8,487.52) .
According to the industry association, as of March 4, 2022, there are 31 registered cryptocurrency exchanges in Japan.
Global regulators remain concerned about the safety of the new market for investors given its popularity. The US Securities and Exchange Commission (SEC) has named the possibility of market manipulation as one of the main reasons why several spot ETF applications on the NYSE Arca and Cboe BZX Exchange bitcoin exchanges were rejected due to non-compliance with US exchange law.
Source: Bits
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