Japan Joins Global Sanctions Against Crypto Exchange Garantex
Tokyo has officially added the Moscow-based cryptocurrency exchange Garantex to its sanctions list, freezing assets and restricting payments and capital transactions with the firm. This move aligns Japan with the United States and the European Union, which have previously targeted Garantex for alleged sanctions evasion and facilitation of illicit financial activities.
The new measures, which took effect on October 2, 2026, are part of a broader sanctions package against Russia. Garantex was designated alongside 32 other entities and nine individuals, with the package primarily focusing on Russia’s war economy.
Broader Sanctions Target Russia’s War Economy
Beyond the cryptocurrency sector, Japan’s latest sanctions also extend to shipping. The government has imposed service and financing restrictions on 35 vessels associated with Russia’s “shadow fleet.” Several other designated entities are directly involved in Russia’s defense industry, including Tulamashzavod and Motovilikhinskiye Zavody, as well as individuals linked to major defense conglomerates.
Japan’s action against Garantex does not introduce new accusations but rather enforces existing restrictions already in place against the exchange.
Garantex’s History of Sanctions and Enforcement Actions
Founded in 2019, Garantex has reportedly processed at least $96 billion in transactions since April of that year. The exchange lost its Estonian license in early 2022 due to deficiencies in its anti-money laundering practices.
Later in 2022, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Garantex. The European Union followed suit in 2025. In March 2025, an international law enforcement operation seized Garantex’s operational infrastructure, including domains and servers in Germany and Finland, and froze over $26 million in assets. In August 2025, U.S. authorities also sanctioned Grinex, which they identified as Garantex’s alleged successor, along with three Garantex executives.
Impact and Future Implications
While Japan’s designation may not significantly alter Garantex’s operational landscape, given the prior disruptions from the 2025 seizures, it presents a concrete change for crypto businesses with exposure to Japan. Compliance teams must now incorporate Japan’s sanctions list into their screening processes for wallets and counterparties, adding Japanese legal risk to existing U.S. and EU exposure.
The inclusion of Garantex alongside defense sector entities underscores policymakers’ view of the exchange’s role within Russia’s broader economic and military apparatus. The key question moving forward is whether Japan and other jurisdictions will extend their sanctions to cover successor entities like Grinex, demonstrating a coordinated effort to keep pace with platforms that may rebrand to evade updated sanctions lists.
