Crypto To Provide Russia With An Escape From Sanctions? How Japan Will Try To Prevent It

 CRYPTO.News

Per a report from the Japan Times, the Asian country has started to discuss ways in which Russia could use crypto to escape sanctions. The Russian Federation has been hit by the international community after the consummation of their invasion of Ukraine.

Thus, Japan, the European Union, the United States, and other countries have decided to impose unprecedented sanctions on the Vladimir Putin-led country and its elite. However, regulators and political actors around the globe have raised concerns over the possible use of crypto to circumvent financial penalties.

According to the report, Japan’s Virtual and Crypto Assets Exchange Association are discussing ways to maintain sanctions against Russia effectively. The Japan Times quotes a regulatory official familiar with the matter.

The Japanese institutions are specifically trying to come up with a method to prevent sanctioned entities and people to transferred digital assets. The quoted official claims Japan is not currently looking into preventing access to cryptocurrencies for all Russian citizens.

Why Crypto Is The Worst Tool To Try To Avoid Sanctions

Brian Armstrong, CEO of leading U.S. crypto exchange Coinbase, seems to agree with this idea. In a thread shared via his Twitter account, the executive said the following on the risk of digital assets becoming an escape for sanctioned entities and individuals:

(…) we don’t think there’s a high risk of Russian oligarchs using crypto to avoid sanctions. Because it is an open ledger, trying to sneak lots of money through crypto would be more traceable than using U.S. dollars cash, art, gold, or other assets