Japan Sanctions Garantex Amid Russia Crypto Crackdown
Japan has added Russian cryptocurrency exchange Garantex to its asset-freeze list as part of a new sanctions package targeting Russia. This move comes as part of a broader package that includes 33 Russian entities and nine individuals, with payments to listed parties and certain capital transactions now requiring Japanese government permission. The sanctions are in response to the ongoing war in Ukraine and are being implemented in coordination with other major economies. Garantex, which has already faced enforcement actions from the US and EU, has been designated under its name and addresses in St. Petersburg and Moscow.
The designation subjects transactions involving Garantex to Japan's asset-freeze framework, with payments to the exchange requiring permission and certain capital transactions, including deposits and loans, being restricted. The wider package also targets 35 vessels, requiring permission for specified services and certain loans, guarantees, and leases connected with them.
The inclusion of a cryptocurrency exchange and maritime infrastructure in the sanctions package highlights how parallel financial and logistics channels are increasingly being targeted, rather than just Russian banks and conventional payment systems. This move adds another layer of complexity for exchanges, banks, and payment companies with exposure to Russian crypto flows.