Japan Adds Another Layer to Crypto Crackdown on Russia

Japan has taken another step in its ongoing campaign to sanction Russian cryptocurrency exchange Garantex. The exchange was already sanctioned by the US and EU, and in March 2025, authorities disrupted its infrastructure. U.S. authorities seized three domains, while German and Finnish agencies seized servers supporting the exchange.

The disruption led to a significant migration of activity associated with Garantex towards Grinex, another exchange that was subsequently sanctioned by OFAC in August for facilitating billions of dollars in cryptocurrency transactions. A7A5, a ruble-backed digital asset issued by Kyrgyzstani firm Old Vector, was also used in the migration of customer balances.

Garantex has been under sanctions since 2022, with the U.S. Treasury first sanctioning it in April for operating in Russia's financial-services sector. The exchange has processed at least $96 billion in cryptocurrency transactions since April 2019, according to the Department of Justice. Prosecutors also charged two administrators with offenses related to operating the platform and alleged that it facilitated money laundering and sanctions violations.

Japan's latest measures extend beyond crypto into shipping, trade, and other financial channels, targeting Russian-linked individuals and companies, as well as 35 vessels associated with Russia's maritime trade. The package introduces restrictions involving specified services, financing, sales, purchases, leasing, and chartering. This gives the package two different financial pressure points, restricting access to payment and capital channels and addressing maritime infrastructure used to move Russian commodities.