Japan to Tighten Crypto Rules to Ensure Effectiveness of Anti-Russian Sanctions, Reports Say

TOKYO (Sputnik) - Japan has drafted amendments to the foreign exchange law to prevent Russia from transferring assets covered by sanctions, media reported on Wednesday.

According to Japan's NHK broadcaster, the draft revisions are aimed at preventing the transfer of some assets, covered by the sanctions, to cryptocurrency after Japan and other countries have disconnected some Russian banks from the SWIFT network.

Measures provide for restrictions on the transfer of cryptocurrency funds of sanctioned individuals and entities to third parties, while crypto exchanges will be required to check if recipients are on the blacklist before allowing the transaction.

The government plans to submit the proposed changes to the current session of Japan's parliament.

On 24 February, Russia launched a military operation in Ukraine after the breakaway republics of Donetsk and Lugansk appealed for help in defending themselves against attacks by Ukrainian troops. In response to Russia’s operation, Western countries have rolled out a comprehensive sanctions campaign against Moscow, which included SWIFT cutoff for select banks and other restrictive measures targeting Russian financial institutions.