U.S. and allies rush to close crypto loophole in Russia sanctions

 

U.S. and allies rush to close crypto loophole in Russia sanctions

TOKYO -- Japan and Western peers have presented a united front against the war in Ukraine sparked by Moscow's invasion, leveling sanctions against the Russian state and individuals. Now comes the hard part: enforcement.
 
Russia's elite individuals and powerful businesses have been using cryptocurrency to funnel assets offshore. Countries are rushing to close this loophole -- which is no easy task, given the decentralized nature of crypto.
 
In Japan, the country's self-policing crypto organization began discussing new rules Thursday on how to stop this, including a ban on transactions involving Russia that are mediated by exchanges.
 
"We'll work with the Financial Services Agency to consider what specific measures are possible," says Satoshi Hasuo, head of the Japan Virtual and Crypto Assets Exchange Association.