Tuesday, September 22, 2020
Home Business Report: North Korea Using Cryptocurrency to Fund Weapons of Mass Destruction Programs

Report: North Korea Using Cryptocurrency to Fund Weapons of Mass Destruction Programs

North Korea is actually getting a significant amount of money through cryptocurrency and they are getting it outside of the traditional financial system

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.

“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 they’re 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 Korea’s 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 Pyongyang’s financial activities, RUSI’s Izenman says the reclusive state has the capacity to exploit weaknesses in global regulation.

“It’s a national security threat and will just increase in the time to come. Cryptocurrency, especially if you’re using coins such as ‘Monero’ or ‘Zcash’ that that are privacy coins that aren’t as transparent as ‘Bitcoin’, can be used and traded, and they don’t need to go through the fiat system, they don’t need to touch the dollar, they don’t need to touch a bank.”

cryptocurrency
The report authors warn that southeast Asia’s burgeoning cryptocurrency industry is particularly vulnerable as regulators are struggling to keep up with the technology. Pixabay

The report authors warn that southeast Asia’s burgeoning cryptocurrency industry is particularly vulnerable as regulators are struggling to keep up with the technology.

ALSO READ: Technology Campaigners Want Firms to Connect People in Positive Ways, Fight ‘Human Downgrading’

“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 we’re hoping to help improve regulation in the region. That being said, given that cryptocurrency is inherently a borderless type of system, it’s 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. (VOA)

STAY CONNECTED

19,146FansLike
362FollowersFollow
1,774FollowersFollow

Most Popular

Self-Driving Cars To Navigate Rush Hour Traffic On This Planet: NASA

A laser-based technology designed to help spacecraft land on a proverbial dime for missions to the Moon and Mars is also helping self-driving cars...

Choose Correct Diet And Workout To Stay Motivated: Actor Sunny Singh

Actor Sunny Singh says when you choose the correct diet and workout, you will always be motivated. "It's been quite a long that I've been...

ICAR Builds Technology To Make Bacteriophages To Control Shrimp Diseases

The ICAR-Central Institute of Brackishwater Aquaculture (CIBA) on Monday said it has transferred its technology to make bacteriophages, or viruses that eat bacteria, to...

NEP Arrived When India Is Redefining Itself As “Atmanirbhar Bharat”

The New Education Policy (NEP) has infused a new wave of optimism with the vision of strengthening the education system, branching out into varied...

Venom Of Largest Spiders To Help Irritable Bowel Syndrome Patients

The venom from one of the largest spiders in the world may bring the hope to ease the gut pain suffered by millions of...

Ketogenic Diet May Reduce Risk of Alzheimer’s Disease

Eating healthy, low calorie food could help fight the fungi in the gut and thus reduce the risk of dementia among senior citizens, doctors...

45% of the Top 100 Google Searches Related to Travel Amid Pandemic

After living months in isolation during the pandemic, the travel bug has hit millions of people and according to Google, 45 per cent of...

Bollywood Kills, Sexually Abuses: Debates Parliament

Bollywood kills, Bollywood sexually abuses', were some of the allegations that resonated in the Parliament House complex on Monday. BJP Rajya Sabha member Roopa Ganguly,...

Recent Comments