Japan will prevent cryptocurrency from being used to evade economic sanctions slapped on Russia over its invasion of Ukraine.

The country will be moving in lockstep with the US and European countries as they rush to pass similar measures aimed at bolstering their sanctions.

Japan’s Finance Minister Shunichi Suzuki said they would work toward securing the effectiveness of economic sanctions by cooperating closely with the international community

According to the Financial Services Agency, it would establish rules to stop cryptocurrency transactions by people subject to economic sanctions. The agency is in talks with the Japan Virtual and Crypto Assets Exchange Association, which includes all of Japan's cryptocurrency exchanges, on what measures to take.

After the US and European countries agreed to exclude major Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the global payment system that allows for the rapid transfer of funds across borders, they are now turning their focus to cryptocurrency.

Observers point out that it is virtually impossible to stop individuals from using cryptocurrency for overseas remittances, making it a potential tool that could be used to get around sanctions.

French Finance Minister Bruno Le Maire said they are taking measures to prevent cryptocurrencies or crypto assets from being used to circumvent the financial sanctions on Russia decided upon by the 27 EU countries.