Japan Sanctions Russian Crypto Exchange Garantex in Expanded Ukraine Measures
Japan has expanded its sanctions against Russia by adding the cryptocurrency exchange Garantex to its asset freeze list. The measure, announced on October 2 by the Ministry of Foreign Affairs, targets 33 entities and nine individuals under the Foreign Exchange and Foreign Trade Act. This move aligns Japan with other major economies responding to Russia's actions in Ukraine.
The new restrictions impose a permission system on payments and capital transactions involving the listed parties. This includes deposits, trusts, and money loans, requiring government approval for any financial dealings. Additionally, the sanctions package bans exports to four non-Russian and non-Belarusian entities, restricts transactions for 35 vessels in Russia's 'shadow fleet,' and prohibits exports of items that could enhance Russia's industrial capabilities.
Garantex, a Moscow-based exchange, has previously been sanctioned by the United States and the European Union for allegedly helping Russian entities evade financial restrictions. Japan's latest designation further isolates the platform by cutting off access to compliant banking and liquidity. This action underscores the growing international effort to shut down cryptocurrency channels used to bypass sanctions.
The restrictions apply to obligations arising on or after October 2, with a grace period through November 1 for contracts concluded before that date. The freeze list, published in the Ministry of Foreign Affairs Notice, includes other Russian entities and individuals whose financial transactions now require prior government permission. Japan described the step as part of its ongoing response to the situation in Ukraine, contributing to global peace efforts.