A Japanese government official on Monday has revealed that the country is planning to bring amendments to its Foreign Trade Acts and Foreign Exchange Policies that will resist the crypto exchange platforms of the country from taking evasive steps using the digital assets.
Hirokazu Matsuno, the Chief Cabinet Secretary, has announced in a press conference that the government of Japan is reflecting upon introducing a bill that will revise the foreign exchange rules and include the crypto exchange platforms. The country’s newly elected Prime Minister, Fumio Kishida, has also extended his support for the new and revised legislation. Furthermore, Kishida has also called for harmonized movement with the west to enforce the revised laws.
This revised amendment suggests that just like banks, the crypto exchange platforms will also need to flag and verify transactions that are linked with Russian groups, associations or individuals.
Just like their western allies, Japan has also conducted multiple financial sanctions against Russia after its invasion of Ukraine. At the beginning of this month, the economic regulatory organization of the country had asked the crypto exchange platforms to restrict the transactions associated with Russia.
But with the help of parliamentary law, the crypto exchange platforms will be bound to restrict and block the crypto transactions of multiple Russian people and officials, including banks, oligarchs and other institutions.
Because of the country’s growing crypto market and recent comments of the ministers, the country thinks that Russia can evade financial sanctions with the help of blockchain technology and cryptocurrency.
The financial sanctions brought out by several different countries throughout the world on Russia has forced the country to search for alternative payment methods and systems that will let them access the international trade market. The conjecture of using cryptocurrency as an alternative way to evade sanctions may have been out there as one of the most discussed topics, the experts have rejected such notions.