A total of 31 Japanese cryptocurrency exchanges received orders to stop serving Russian customers.
SBI will continue to run its banking division in Moscow.
The ongoing severe crypto winter, along with the Ukraine-Russian conflict, forced the largest online brokerage in Japan to cease its cryptocurrency mining operations in Russia.
SBI Holdings has reportedly informed Bloomberg that it will be leaving the Siberian region this week. Siberia is renowned for its abundant hydropower resources and its chilly climate, which is ideal for cryptocurrency mining.
According to the company’s media spokesperson, “SBI’s exit from Siberia is due to the uncertainty caused by Russia’s invasion of Ukraine and the dwindling profits being made through cryptocurrency mining.”
The broker is putting together a thorough plan to sell off the cryptocurrency mining equipment and stop its mining operations. Additionally, SBI hasn’t created any such plan to end its mining activities in Siberia.
SBI will keep operating its banking division in Moscow and may decide to halt its mining operations in Siberia.
According to Bloomberg, the SBI cryptocurrency asset business had pre-tax losses of 9.7 billion yen as of June 30, four months after the start of the conflict between the Ukraine and Russia.
Because the US warned Japanese financial regulators to sever their ties with Russia as a result of international sanctions, SBI Holdings is under pressure from the US.
American diplomats advised the nation to stop all Siberian cryptocurrency mining operations.
A average of 31 Japanese cryptocurrency exchanges received orders to stop serving Russian customers.
The Japanese Financial Service Agency advised cryptocurrency exchanges to keep an eye on all transactions connected to people who had been sanctioned in March.