Russia's sanctions to be strengthened Amendment to the law to prevent the misuse of crypto assets

The government will amend the law to prevent crypto assets from being misused as sanctions loopholes to strengthen sanctions on Russia.

The specific details, such as restricting the transfer of crypto assets to third parties by sanctioned persons, have been clarified.

For Russia, Europe, the United States and Japan are strengthening economic sanctions such as excluding some banks from the international financial settlement network SWIFT, but the assets held by the sanctioned persons are replaced with crypto assets. The possibility of evading sanctions has been pointed out.

For these reasons, the government has a policy of submitting a bill to amend the Foreign Exchange Law to the current Diet in order to increase the effectiveness of sanctions, and the specific details have been clarified.

According to this, it is necessary to regulate the transfer of crypto assets to a third party by the sanctioned person and confirm in advance whether the customer's destination is not subject to sanctions to the crypto asset exchange company as well as the financial institution. I will oblige you to do so.

This aims to prevent Russia from misusing crypto assets as a loophole in sanctions.

The government intends to tighten digital regulations and clarify its stance on strengthening sanctions on Russia.