Japan Sanctions Russian Crypto Exchange Garantex in Expanded Measures

The Japanese government has added Russian cryptocurrency exchange Garantex to its asset-freeze sanctions list, further tightening restrictions on the platform. This move aligns with earlier sanctions imposed by the US, the European Union, and other countries, targeting Garantex for allegedly aiding Russian companies in evading financial penalties.

Japan's Ministry of Foreign Affairs, Ministry of Finance, and Ministry of Economy, Trade, and Industry issued a joint statement announcing the sanctions. The measure restricts payments and capital transactions involving Garantex and other newly designated parties.

In addition to Garantex, the sanctions package includes 33 Russia-linked entities, nine individuals, and 35 vessels from the so-called shadow fleet used to transport Russian crude oil. Repair and insurance services for these ships have also been banned.

Blockchain intelligence firm TRM Labs suggested that Garantex may have anticipated the sanctions and prepared contingency plans to quickly relocate customers, infrastructure, and funds to a successor platform. The US Treasury's Office of Foreign Assets Control later imposed additional sanctions on Garantex and its successor exchange, Grinex.