Ukraine War: Japan Regulates Bitcoin Against Russian Sanctions

From crypto exchange to bank – Following the sanctions of the United States and its allies against Russia, the Russian authorities have decided to wage a monetary war against the dollar and the euro. Westerners are now forced to buy rubles in order to buy Russian gas. But Russia’s provocation goes even further. The country has indeed decided to accept Bitcoin (BTC) for the purchase of commodities. This seemingly pro-crypto stance unfortunately gives the US, Europe, and their allies in Asia another good reason to regulate the cryptocurrency industry more stringently.

Russian sanctions to subdue Bitcoin in Japan

Chief Cabinet Secretary Hirokazu Matsuno revealed on March 28, 2022, that Japan plans to amend its foreign exchange and foreign trade law to prevent digital assets from being used as a loophole for sanctions by foreign exchanges. countries concerned.

This amendment would indeed make it possible to submit cryptocurrency exchanges the laws governing banks. Exchanges will then be required to verify and report transactions involving Russian individuals or other entities that are under sanctions.

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This amendment is supported by the Prime Minister, Fumio Kishida. The latter also called for coordinated actions with Japan’s Western allies to ensure the application of these new laws.

This call will certainly not fall on deaf ears with its allies. The European Union indeed also wants to attack Bitcoin and its cadets, for a so-called more effective implementation of the sanctions against Russia.

The FBI Director does not believe that cryptocurrencies could really help Russia circumvent sanctions. However, the current context has given a good excuse to governments who dream of putting Bitcoin on a leash, as to a pseudo-need to toughen the regulatory framework governing cryptocurrencies.

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