Japan to revise foreign exchange law to end crypto loophole for sanctions on Russia

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Japan will revise its foreign exchange law to prevent Russia from evading Western financial sanctions following Moscow's invasion of Ukraine through cryptocurrency assets, top government officials said on Monday.The government will submit a revision of the Foreign Exchange and Foreign Trade Act to the current parliament session to strengthen protections against potential sanction-busting by Russia through digital assets, Chief Cabinet Secretary Hirokazu Matsuno said in a press conference.Prime Minister Fumio Kishida also called for the law to be amended in a Monday parliament session, where he stressed the need for coordinated moves with Western allies after attending last week's Group of Seven summit in Belgium.A finance ministry official told Reuters discussions were under way about the proposed amendment, saying he could not provide further details.Also Read:Cryptocurrencies today: Bitcoin hits 3-month high, rising over 5%; Ether, Dogecoin, Shiba Inu gainThe revision "presumably enables the government to apply the law to crypto-asset exchanges like banks and oblige them to scrutinise whether their clients are Russian sanction targets," said Saisuke Sakai, senior economist at Mizuho Research and Technologies.Also Read: Cryptocurrency Podcast: The future of events in MetaverseFollowing the invasion of Ukraine, the Japanese government has slapped asset-freeze sanctions on more than 100 Russian officials, oligarchs, banks and other institutions.

Japan has also banned high-tech exports and revoked the most-favoured nation trade status for Russia, which calls its actions in Ukraine a "special military operation".Also Read: How do crypto cross-border payments work?Earlier this month, Japan's financial regulatory body