As a response to Russia’s invasion of Ukraine, the United States implemented economic sanctions. This was a measure that aimed to exclude Russia from the international financial market. Russian banks were closed on March 12. LostThe international messaging and payments network SWIFT was available to all. Private sector payment companies like Mastercard (NYSE) or PayPal (NASDAQ:), had similar access. These organizations are highly monitored and closely controlled and quickly reacted to the crisis. But, it was soon apparent that concerns arose about the possibility of the Russian government, along with companies and oligarchs, using digital currency exchanges for cover to avoid sanctions.

The Bank of England in the United Kingdom and the Financial Conduct Authority requested that crypto companies enforce sanctions on their platforms. Since then, regulators and central banks around the globe have joined the chorus of concern. Japan was the latest to join this chorus. AnnouncementIt would also be updating its Foreign Exchange and Foreign Trade Act. It aims to expand its scope to include crypto assets. This will require exchanges to determine whether clients are Russian sanctions targets.