Japan will review its currency laws to prevent Russia from evading Western financial sanctions through cryptocurrency assets.

The government will present a revised Foreign Exchange and Foreign Trade Law in the current session of parliament to strengthen protection against potential Russian sanctions violations through digital assets, Cabinet Secretary General Hirokazu Matsuno said at a press conference.

Prime Minister Fumio Kishida also called for amendments to the law in Parliament, stressing the need for coordinated action with Western allies after attending last week's G-7 summit in Belgium.

A finance ministry spokesman told Reuters that discussions on the proposed amendment were under way.

The revision presumably would allow the government to apply the law to crypto asset exchanges such as banks and require them to scrutinize whether their clients are subject to Russian sanctions, said Saisuke Sakai, senior economist at Mizuho Research and Technologies.

Japan has imposed sanctions against more than 100 Russian officials, oligarchs, banks and other institutions. Japan also banned the export of high technology and deprived Russia of the most favored nation in trade.

Earlier this month, Japan's financial regulator ordered about 30 cryptocurrency exchanges in the country not to trade in sanctioned assets.