Japan Adds Crypto Exchange Garantex to Sanctions List

Japan has added the Moscow-based crypto exchange Garantex to its asset freeze list, effective October 2, 2026. The move restricts capital transactions and payments involving the exchange, aligning Tokyo with existing sanctions already imposed by the United States and the European Union.

The designation was part of a wider sanctions package targeting Russia, which included 32 other entities and nine individuals. Many of the other designated parties are linked to Russia’s defense sector, such as Tulamashzavod and Motovilikhinskiye Zavody. Additionally, Japan implemented financing and service restrictions on 35 vessels associated with Russia’s shadow fleet.

Garantex, founded in 2019, has processed at least $96 billion in transactions since its inception. The exchange previously lost its Estonian license in early 2022 due to anti-money laundering deficiencies. The US Treasury’s Office of Foreign Assets Control sanctioned the platform later that year, followed by the European Union in 2025. In March 2025, an international law enforcement operation seized the exchange's infrastructure in Germany and Finland, freezing over $26 million in assets.

While the new Japanese sanctions do not introduce fresh accusations against the exchange, they increase the legal risk for crypto businesses operating in Japan. Compliance teams must now screen for Garantex when monitoring wallets and counterparties, adding to existing US and EU regulatory exposure.

The move highlights the ongoing challenge for regulators in keeping pace with platforms that may attempt to rebrand. US authorities previously sanctioned Grinex in August 2025, identifying it as an alleged successor to Garantex, along with three executives associated with the original exchange. Whether Japan and other jurisdictions will extend their sanctions to cover such successor entities remains an open question.