Japan Sets Penalties on Crypto Exchanges for Violating Russia Sanctions: Report

Japan's government and financial regulator have laid out the penalties crypto exchanges could face if they fail to comply with sanctions imposed on Russia following its invasion of Ukraine.

The Financial Services Agency and Ministry of Finance announced the penalties in a joint statement Monday, according to a report by Forkast.

Crypto exchanges making unauthorized payments to sanctioned individuals could be fined as much as 1 million yen ($8,500), with executives facing up to three years in prison.

The financial regulator also requires exchanges to report any suspected instances of such transfers.

There have been concerns that crypto could be used as a means of evading sanctions placed on Russia and some individuals. There has yet to be any clear sign that this is happening.