Home News North Korea is Purportedly Using Cryptocurrencies to Circumvent US-Imposed Sanctions

North Korea is Purportedly Using Cryptocurrencies to Circumvent US-Imposed Sanctions

September 28, 2018 16:34
Source: CNN Money
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No country in the world is impervious to the United States of America and its penchant for imposing sanctions on countries, it deems “rebellious.”

Fortunately, however, some countries on the receiving end of the sanctions have found a way around it. First it was Venezuela that devised a new cryptocurrency called Petro which was backed by the nation’s oil, to circumvent the sanctions.


Moreover, according to Times, a magazine, Russia played a role in developing Petro.

Now, another country has found a way to circumvent the incovenient sanctions. According to news reports, it has emerged that North Korea may be engaging in extensive bitcoin trading to pay off the sanctions.

This was discovered by two major people- Ross Delston, a Washington-based attorney and expert witness specializing in anti-money laundering (AML) and combating the financing of terrorism (CFT), and Lourdes Miranda, an independent financial intelligence analyst and financial crimes investigator.

The story which first appeared in Asia Times, quoted the duo saying, “DPRK can develop their own cryptocurrencies or use established cryptoassets like bitcoin.” They elaborated stating, that creating their own blockchain-based virtual currency “would 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 duo also added that DPRK was liable to create its own cryptocurrency wallets as well as virtual bank accounts to carry out cryptocurrency-based transactions with any European-based wallets, minus the Know Your Customer (KYC) process or the troublesome US sanctions.

They elaborated, “North Korea could create an online wallet using a Russia-based service, transfer its cryptoassets into a Bulgaria-based wallet service and then transfer it again into a wallet located in Greece, using anonymous communication and using their blockchain network.”

One important thing to note is, when we went through Asia Times (where this story had appeared initially), we found that it had been taken down.

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