As the Russian invasion against Ukraine enters the fourth week, many countries continue imposing more trade sanctions against the sovereign nation of Russia. The United States and the European Union recently imposed stringent measures to prevent Russia from using digital assets to evade trade sanctions.
In the same spirit of solidarity with Ukraine, more nations from the Asian region have joined to respond to the situation.
Japan To whip Crypto Exchanges Violating Sanctions
Global crypto regulators continue pushing different crypto exchanges to comply with sanctions imposed against Russia, with Japan now becoming the latest country from the Asian region to execute the crypto ban.
On March 14, the Japanese Financial Services Agency (FSA) and Ministry of Finance affirmed that cryptocurrency exchanges should not process any transaction involving sanctioned individuals or entities in Russia and Belarus. The joint regulatory team insisted that digital assets are part of the restrictions, and any crypto-asset identified or related to sanctions should be frozen.
The FSA added that any unauthorized transactions under sanctions, including transfers of crypto assets or non-fungible tokens (NFT), are subject to penalties like a three-year jail term or a 1 million yen ($8,500) fine.
The latest sanction alert appears a few days after the European Union, the United States, and the G7 nations announced a new set of sanctions, targeting the Russian economy and wealthy individuals who are evading sanctions using crypto.
Singapore Bans Crypto Funding For Russia
Other Asian countries like Singapore have also stood in solidarity with Ukraine, implementing sanctions against Russia. Last week, the Singaporean regulatory authority banned all local financial institutions from performing any transaction with sanctioned banks or facilitating fundraising for the Russian government. Those sanctions include crypto transactions, non-fungible tokens, and other digital assets.
While commenting about the crypto ban at the time, executives from notable crypto businesses like Luno crypto exchange suggested that most investments in Singapore are unlikely to have a direct partnership with Russia. In the same context, ADDX, a crypto-enabled private market exchange in Singapore, said that the Russian sanctions are yet to impact its operations. ADDX CEO Oi-Yee Choo said:
“We perform Know Your Customer and Anti-Money Laundering checks on all our investors, and we, therefore, do not handle any anonymous transactions.”
South Korea Blocks Russian IP Addresses
South Korea had also joined a global team of countries condemning the Russian federation against invading Ukraine, with several local crypto exchanges blocking IP addresses related to Russian users.
According to a local news agency, ‘Yonhap’ report published on March 3, major South Korean exchanges such as Gopax, Bithumb, and Korbit have already blocked access to platforms accounts from Russia-linked IP addresses.
In the meantime, many governments are targeting digital assets as they believe it is now among the few options remaining to pay for services amid massive global sanctions.
Buy Crypto NowThailand Stands In Solidarity With Ukraine
Thailand is another Asian country standing in solidarity with Ukraine. But, being a global tourist destination, the Thailand government is indecisive in banning crypto assets due to massive stranded Russian tourists in the country.
On March 8, Phuket Tourist Association President, Bhummikitti Ruktaengam, hinted that his group held talks with the Bank of Thailand about offering crypto payment as an alternative option for Russian tourists stuck in the country due to sanctions, stating:
“Cryptocurrencies would serve as a backup while transactions could not proceed,”
Previously, tourist could transact their goods and services using various fintech firms such as MasterCard and Visa debit. But, due to ongoing sanctions pressure, payment giants have terminated support to all Russians, leaving them stranded in the country.
Russia Feels The Sanctions’ Heat
As more regulators around the globe continue implementing different strategies to limit Russia’s chance of avoiding sanctions using crypto, its local lawmakers are now thinking of digital assets to evade some of the restrictions.
Earlier this week, Russian State Duma deputy Alexander Yakubovsky suggested that Russia needs to establish its crypto exchange to soften the impact of global sanctions.
In a short interview with local news agency Parlamentskaya Gazeta, Yakubovsky stated:
“Crypto is an area where it’s hard to talk about really effective restrictions against our country.”
Notably, the Russian government now desperately needs crypto to cushion her economy despite her authorities sardonically limiting the service of legal crypto exchange on to companies like Binance. Russia even deliberately prevented local financial firms from offering crypto investments.
