US diplomats has asked Japan to make its crypto exchanges stop their services and other related activities, such as mining operations in Russia. The US is trying to corner Russia from every possible angle to make Russia accountable for its invasion of Ukraine, which started on February 24th.
Russia did not want Ukraine to become a part of NATO (North Atlantic Treaty Organization), an alliance of 30 countries with America as its leader. Ukraine started the process of joining NATO despite the warnings from Russia, after which Russia invaded it and also fulfilled its plan to take Ukraine under its control.
Since then, the US has started to put sanctions on Russia to isolate it from the global economic structure and suffer financially. Stopping Japanese exchange operations in Russia is a part of the US’s plan.
More insights into the Russian situation
US diplomats have given the names of several crypto exchanges from Japan’s 31 licenced exchanges still running in Russia.
Russia contributes a large part to the crypto mining sector. Japanese officials have been asked to pay attention to a place called Irkutsk in Siberia. It is used for large-scale mining because of the cool climate and cheap hydropower-created electricity.
Japan has accepted the US’s demands, due to which Japan’s Financial Service Agency (FSA), responsible for financial regulations in banking and insurance, has asked for exchanges to sever ties with Russia.
Because the exchanges do not want to cut their profits, a significant portion of which comes from Russia, some have established a complex network of payments and subsidiary companies.
#Japan prepares to oblige #crypto exchanges to check transactions as part of #Russia sanctions. https://t.co/xZ902yhZTU
— Bitcoin News (@BTCTN) April 1, 2022