Voice of America
24 Apr 2019, 23:37 GMT+10
LONDON - North Korea is using cryptocurrency markets to evade global sanctions and is likely using the virtual money to fund its weapons of mass destruction programs, according to a new report from the London-based Royal United Services Institute (RUSI).
The report recommends regulators take urgent steps to counter the threat.
Pyongyang is subject to wide-ranging international sanctions following a series of nuclear tests and long-range missile launches on recent years. The reclusive state is seeking ways to raise money and bypass those sanctions and emerging cryptocurrencies could become a key lifeline for the regime, says report co-author Kayla Izenman.
WATCH: Henry Ridgwell's video report
Get Adobe Flash Player Embed share North Korea Using Cryptocurrency to Fund Weapons Program, Report Warns Embed share The code has been copied to your clipboard. width px height px Share on Facebook Share on Twitter The URL has been copied to your clipboard No media source currently available
0:00 0:02:03 0:00
North Korea is actually getting a significant amount of money through cryptocurrency. And they are getting it outside of the traditional financial system, which is the one that most people think about when theyre thinking about how a weapons of mass destruction program might be financed, says Izenman.
Many cryptocurrency exchanges ban North Korean users. Pyongyang is accused of numerous hacking operations get around these measures. In one December 2017 attack on South Koreas Bithumb exchange, it is claimed North Korea hackers stole Bitcoin and Ethereum virtual currencies then worth $7 million.
While cryptocurrency currently plays a minor role in Pyongyangs financial activities, RUSIs Izenman says the reclusive state has the capacity to exploit weaknesses in global regulation.
Its a national security threat and will just increase in the time to come. Cryptocurrency, especially if youre using coins such as Monero or Zcash that that are privacy coins that arent as transparent as Bitcoin, can be used and traded, and they dont need to go through the fiat system, they dont need to touch the dollar, they dont need to touch a bank.
The report authors warn that southeast Asias burgeoning cryptocurrency industry is particularly vulnerable as regulators are struggling to keep up with the technology.
Most of the hacks that North Korea has been involved in have been in southeast Asia. And most of their sanctions evasion work has also been in southeast Asia. So were hoping to help improve regulation in the region. That being said, given that cryptocurrency is inherently a borderless type of system, its imperative that everyone be aware of this, Izenman adds.
Meanwhile, North Korean leader Kim Jong Un arrived Wednesday in Vladivostok for a summit with his Russian counterpart Vladimir Putin where the ongoing sanctions against Pyongyang are likely to be high on the agenda.
Get a daily dose of Kenya Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Kenya Star.
More Information(Photo credit: Bill Streicher-Imagn Images) Australia's Cameron Smith and England's Lee Westwood were in a five-way tie for the lead...
The Hague [Netherlands], July 11 (ANI): Italy made history after securing qualification for the 2026 Men's T20 World Cup in India and...
London [UK], July 11 (ANI): Young prodigy Jamie Smith became just the third England wicketkeeper to hammer 400 runs in a Test series,...
London [UK], July 11 (ANI): England's talismanic batter Joe Root shattered the 'Wall' Rahul Dravid's record for most outfield catches...
London [UK], July 11 (ANI): England right-hand batter Joe Root's poor form in Tests against India's right-arm seamer Jasprit Bumrah...
ABU DHABI, 11th July, 2025 (WAM) - UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan today received a phone call from His...
Russia will oppose any attempt to target its national tongue abroad, the document says ...
Ukraines Security Service has confirmed that Colonel Ivan Voronich was recently gunned down in Kiev A senior Ukrainian intelligence...
Ukraine's Security Service has confirmed that Colonel Ivan Voronich was recently gunned down in Kiev ...
How the Wests recklessness is testing Moscows nuclear patience A multipolar world is, by its nature, a nuclear one. Its conflicts...
Washington and Brussels have been fighting over a tariff increase since February Relations with the US may never return to what they...
Ottawa [Canada], July 11 (ANI): A day after US President Donald Trump announced a new 35 percent tariff on Canadian goods set to take...