Japan Adds Russian Crypto Exchange Garantex to Asset-Freeze Sanctions List

Japan has expanded its sanctions on Russia by adding Russian cryptocurrency exchange Garantex to its asset-freeze list.

Cointelegraph reported on October 4 that Japan's Ministry of Foreign Affairs, Ministry of Finance and Ministry of Economy, Trade and Industry said in a joint statement that they were tightening sanctions on Russia over its invasion of Ukraine. The measure places Garantex on Japan's asset-freeze list, restricting payments and capital transactions with designated parties.

Garantex has already been sanctioned by the US, the European Union and other countries over allegations that it helped Russian companies evade financial sanctions.

The latest action also added 33 Russia-linked entities and nine individuals to the asset-freeze list. In addition, 35 vessels in the so-called shadow fleet used to transport Russian crude oil were included in the sanctions package, with repair and insurance services for those ships banned.

Separately, blockchain intelligence firm TRM Labs said Garantex may have anticipated the US sanctions and prepared a response plan in advance. In a report, TRM Labs said entities such as Garantex appear to draw up contingency plans well before sanctions are enforced, allowing them to quickly shift customers, infrastructure and funds to successor platforms. The US Treasury's Office of Foreign Assets Control later imposed additional sanctions on Garantex and its successor exchange, Grinex.