The Russian invasion of Ukraine has brought many problems to the whole world. The US, UK, EU and other countries have taken measures to contain the Russian economy. After hurting traditional markets, the Union of Different Countries is now targeting sanctions on the cryptocurrency and NFT markets in Russia. In this application, Japan’s financial regulator and the Virtual and Crypto Asset Exchange Association (JVCEA) have reportedly begun work on it.
How Japan will include cryptocurrency sanctions?
The allies have already taken some steps in response to the Russian invasion of Ukraine. The steps they have taken have limited the Russian economy, access to technology and the cryptocurrency market. The Japanese government is currently negotiating with watchdogs to assess how sanctions can be effectively applied against Russia.
The JVCEA and Japan’s financial regulator are currently analyzing various effective ways to block the transfer of crypto assets from the country’s sanctions list.
However, at the moment there is no proposal in the dialogue to close access for all Russian clients, according to The Japan Times.
How can this affect the Russian crypto industry?
Allied sanctions have already blocked Russian banks from accessing the SWIFT global payment network. This move led to the fall of the Russian ruble by more than 30%. Now you can easily feel what an attack on the Russian cryptocurrency market with potential sanctions can lead to.
We are closely monitoring settlement situations such as crypto assets and SPFS to ensure the effectiveness of sanctions against Russia, Japanese Finance Minister Shunichi Suzuki said, according to The Japan Times.
At the same time, JVCEA chief Satoshi Hasuo said “we will work with the Financial Services Agency to consider possible concrete measures,” Nikkei Asia reported.
According to reports, Russians have invested about 5 trillion rubles ($46.6 billion) in crypto, with the country being the third largest crypto miner after the US and Kazakhstan. By applying more effective sanctions to the Russian crypto industry, an alliance of some countries will most likely strive for its complete destruction.
Denial of responsibility
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication does not bear any responsibility for your personal financial losses.
about the author
Ashish believes in decentralization and has a strong interest in the development of Blockchain technology, the cryptocurrency ecosystem and NFTs. He aims to raise awareness of the growing crypto industry through his articles and analysis. When he’s not writing, he plays video games, watches a thriller, or plays outdoor sports. Contact me at [email protected]
