North Korea Mining Cryptocurrency to Get Away From US SanctionsSeptember 27, 2018
Financial experts from Washington have to state that the financial experts from North Korea are using cryptocurrency to avoid U.S. enforcement.
Lourdes Miranda is the financial crimes investigator whose area of specialization is intelligence collection and analysis.
Ross Delston is an expert whose area of specialization is anti-money laundering. The major role of both of these experts is to combat terrorist financing.
Pyongyang, the capital of North Korea is coming up with its own cryptocurrency and they are as well using popular cryptocurrencies like Bitcoin.
An early report from Korea Development Bank Research Institute confirmed that North Korea is eager to develop cryptocurrencies and that the usage of such currencies is minimal.
Pyongyang’s interest in cryptocurrencies like “Koryo Coin” is related to the high anonymity, the difficulty in tracking, and the easy of cash flow. They are as well interested in minting their own cryptocurrencies.
Cryptocurrencies though not successful in the immediate run, continue to be a preference of international criminals for the purposes of terrorist financing. This is also true in the case of North Korea.
“Crypto-currencies have the added advantage to the DPRK of giving them more ways to circumvent US sanctions.”
Financial experts have to say that, “They can do so by using multiple international exchangers, mixing and shifting services – mirroring the money laundering cycle – to exploit international financial institutions that have correspondent banking relationships with the United States.”
When speaking to the Hill, Priscilla Moriuchi a cybersecurity official stated, North Korea earns around $15 million to $200 million by mining and selling cryptos. Further added, “North Korea has pursued other avenues for obtaining cryptocurrencies as well, including mining of both bitcoin and Monero, ransom paid in bitcoin from the global WannaCry attack in May and even commissioning a cryptocurrency class for North Korean students in November.”
It is quite possible for North Koreas government to create its own cryptocurrency or it might use Bitcoin. “Having their own crypto-currency would also facilitate their ability to open online accounts under the guise of a non-adversarial nation using anonymous communication to conceal the user’s locations and usage on the internet,” The financial experts remarked.
The researchers also
The CCN in its reports also stated that countries like “Iran, North Korea, Russia, and Venezuela” are resorting to cryptocurrencies in order to counteract the economic pressure that they are facing from the US and their allies.
They have to reveal that North Korea mined cryptocurrencies might be laundered by making use of European Exchanges. This will eventually enable the rogue nation to get USD fiat currencies. Thus, Korea will get fiat without any pesky sanctions.