A Japanese government official revealed on Monday that Japan plans to amend the "currency pair and foreign trade law" to include cryptocurrency exchanges in the legal supervision of banks.

The proposed amendments under way are intended to prevent sanctioned countries from taking evasive actions using digital assets.

Chief Cabinet Secretary hiroichi Matsuno said at a press conference that the government was planning to introduce a bill to amend the currency pair law to bring the cryptocurrency exchange under supervision.

The country's newly elected prime minister, Fumio Kishida, also supported the proposed amendment and called for coordinated action with Western allies to implement the new law.

According to the revised currency pair law, cryptocurrency exchanges will be required to verify and mark transactions related to sanctioned Russian individuals or groups like banks.

After Russia attacked Ukraine, Japan, together with most Western allies, adopted various financial sanctions against Russia.

Earlier this month, Japan's financial regulators also asked the cryptocurrency exchange to reject transactions targeted by sanctions.

A legislative amendment in parliament will force the cryptocurrency exchange to block transactions by a large number of sanctioned Russian officials, oligarchs, banks and other institutions.

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