The US authorities called on the Japan Financial Services Agency to restrict the activities of national cryptocurrency exchanges and mining companies that continue to work with Russia.
The US request came to the Japan Financial Services Agency (FSA) following changes to the Foreign Exchange and Foreign Trade Law. Amendments to the legislative act are aimed at strengthening the powers of the country’s regulatory authorities to limit the flow of digital currency.
US diplomats said that according to their data, about 30 Japanese crypto companies are still operating in Russia. They also asked the country’s regulators to pay special attention to the cessation of cryptocurrency mining operations in the Irkutsk region.
In response to a request from US authorities, Japan’s FSA has renewed demands on cryptoasset trading platforms and mining companies to end all ties with Russia, sources close to the three exchanges told The Financial Times.
Another representative of the crypto community from Japan, who wished to remain anonymous, said that Japanese exchanges are constantly facing increased pressure from the FSA to withdraw back offices from Russia and stop any operations. However, he knows of at least a few firms that maintain their business in Russia by setting up companies in non-sanctioned jurisdictions to redirect payments.
In early July, Japan’s FSA announced its intention to amend existing legislation to allow local trust banks to hold and manage digital assets.
