Japan will revise its currency law

Japan will revise its currency law

Japan’s Chief Cabinet Secretary Hirokazu Matsuno told Reuters news agency that the Cabinet will send a revised version of the Foreign Exchange and Foreign Trade Law to Parliament.

The updated legislation should allow the government to apply the same law to cryptocurrency exchanges as it does to banks. Crypto exchanges will be required to verify that their customers are not sanctioned Russians. The new rules will target “deceptive or structured transactions to circumvent sanctions imposed by the U.S.”

According to Finance Minister Shunichi Suzuki, Japanese regulators are closely monitoring the calculations of the Bank of Russia’s financial messaging system with crypto-assets to “ensure the effectiveness of sanctions”. Some experts believe that the Russian Federation will not be able to use cryptocurrencies to circumvent all the sanctions imposed, but there are many ways that Russian individuals and companies can easily overcome some of the restrictions.

Earlier, Chainalysis co-founder and chief strategy officer Jonathan Levin told Bloomberg that the analytics company has yet to find convincing evidence that Russians are actually switching to cryptocurrencies because of sanctions. According to him, Russian citizens are using digital assets because of their potential benefits.

Recall that last week, U.S. Treasury Deputy Secretary Nellie Liang said that the cryptocurrency industry is not yet developed enough to help Russia successfully evade sanctions.

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Written by Renat
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