Japan Sanctions Russian Crypto Exchange Garantex Over Ukraine Invasion

Japan's government has added Russian cryptocurrency exchange Garantex to its asset-freeze list, further restricting the exchange's activities. Garantex had already been sanctioned by the US, the European Union, and other countries over allegations of helping Russian companies evade financial sanctions. The Japanese government's move is part of a broader effort to tighten sanctions on Russia over its invasion of Ukraine. Garantex's addition to the asset-freeze list restricts payments and capital transactions with designated parties. The exchange may have anticipated the sanctions, according to blockchain intelligence firm TRM Labs, which reported that entities like Garantex often draw up contingency plans before sanctions are enforced.

The Japanese government's asset-freeze list now includes 33 Russia-linked entities and nine individuals, as well as 35 vessels in the so-called shadow fleet used to transport Russian crude oil. Repair and insurance services for those ships are banned. The sanctions package also includes additional restrictions on entities that provide services to the shadow fleet. Garantex's successor exchange, Grinex, may be affected by the sanctions as well, according to TRM Labs.

The US Treasury's Office of Foreign Assets Control has imposed additional sanctions on Garantex and its successor exchange, Grinex. The Japanese government's move is part of a broader international effort to pressure Russia to end its invasion of Ukraine.