Who Loves Crypto? North Korea, That’s Who

[skazzio]

This article has been written by Jason Bloomberg and published on https://dailyiconews.com, I just copy and paste it.

What is cryptocurrency really good for? Let’s ask the North Koreans.

Raising funds from criminal activities and evading sanctions are two of North Korea’s most significant uses of crypto, according to the recently published report Closing the Crypto Gap: Guidance for Countering North Korean Cryptocurrency Activity in Southeast Asia from the Royal United Services Institute for Defence and Security Studies (RUSI), a non-profit British think tank.

According to this report, “pressure from international sanctions has led North Korea to pursue complex evasion techniques, which increasingly rely on sophisticated cybercrime operations.”


In fact, the North Koreans were behind the recent highly publicized WannaCry ransomware attack – an attack that explicitly seeks to extort crypto. WannaCry “caused widespread disruption and signalled North Korea’s desire and ability to sponsor cryptocurrency-enabled cybercrime,” according to the RUSI report.

North Korea’s crypto-based cybercrime doesn’t stop with WannaCry. “Recently, North Korea has expanded its cybercrime tactics to include exploitation of the global cryptocurrency infrastructure, which sits outside the more established banking sector,” the report continues.

One approach: targeting crypto exchanges. “North Korea has been linked to six successful exchange hacks that occurred between April 2017 and June 2018,” RUSI says.

Another approach: cryptojacking, or illicit cryptomining, where North Korean hackers infiltrate target networks and install cryptomining malware.

Cryptojacking, however, isn’t the only mining the North Koreans are up to. “North Korea’s established mining operations could offer an advantage over cybercrime insofar as mining newly minted cryptocurrencies with no indication that they have been tainted or associated with criminal activity attracts less attention,” the report continues.

Because every miner processes every crypto transaction, you can rest assured the North Koreans are processing your transactions. Is that OK with you?

The RUSI report concludes on a sober note. “North Korea’s cryptocurrency activity is increasing in value and complexity and is likely to persist as part of its technology-enabled fundraising and sanctions evasion activity,” the report says. “The potential for North Korea to engage in large-scale sanctions circumvention by accessing prohibited goods and services directly with cryptocurrencies is a risk that could grow in significance.”

The question every crypto trader must ask: are you complicit?

None of the companies mentioned in this article are Intellyx customers. Jason Bloomberg neither owns, nor plans to own, any cryptocurrency or other cryptotoken, either long or short.

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[Genemind]

It's disappointing that some countries like North Korea adopt bitcoin in a negative way involving criminal activities. It's one of the reasons why some countries are afraid of the risk of adopting bitcoin because it could lead to insignificant usage
such as cybercrime. If ever they process traders' transactions, I guess we can't do anything about it because that's just a part of the transaction but it doesn't mean that we're complicit.

[CryptoBry]

The menace that North Korea is bringing to the whole world including that of cryptocurrency is clearly growing day by day as it seems they dedicated a big focus and resources to attack any known and unknown weaknesses of the system for their own benefits. And NoKor is succeeding on the big way...based on the news we are heard so far. This a big challenge that the whole industry is facing right now but I guess no one in this industry has enough resources and determination to counteract this demagogue country is doing and will continue to do in the coming years. I am now asking myself: What are the things we can do to mitigate this problem?

[Kakmakr]

Because every miner processes every crypto transaction, you can rest assured the North Koreans are processing your transactions. Is that OK with you?

F@#$* yea! Why not, let them at least contribute positively to something and not just be the face of evil as portrait by their western enemies.  I do not condone any of the wrong things that are being done by the North Korean government and it's people in any way, but using their electricity and resources to help to sustain Bitcoin mining is a positive thing for me. 

It is only harmful when they control more than 51% of the total hashing power of Bitcoin and I doubt that it will happen any day soon with all the sanctions that are in place against them. <Importing massive amounts of ASICs is highly unlikely.> 

[Janation]

It's disappointing that some countries like North Korea adopt bitcoin in a negative way involving criminal activities. It's one of the reasons why some countries are afraid of the risk of adopting bitcoin because it could lead to insignificant usage
such as cybercrime. If ever they process traders' transactions, I guess we can't do anything about it because that's just a part of the transaction but it doesn't mean that we're complicit.

That is the bad side there, we can't do anything about it.

I am just a normal user and I can't really do anything about people that do these things. The usual thing I do is just tell people about it, if they will be saying something for good, I will listen. But yeah, we are not complicit, I've been saying these for years and I will say it again, we can't control people how to use their BTCs, illegal or legal actions.

[hatshepsut93]

The question every crypto trader must ask: are you complicit?

With that logic everyone who uses US dollar is complicit in crimes of mexican drug cartels.

Because every miner processes every crypto transaction, you can rest assured the North Koreans are processing your transactions. Is that OK with you?

This just shows that the author doesn't understand how Bitcoin works, and/or intentionally spreads FUD to scare people who don't know anything about Bitcoin.

The RUSI report concludes on a sober note. “North Korea’s cryptocurrency activity is increasing in value and complexity and is likely to persist as part of its technology-enabled fundraising and sanctions evasion activity,” the report says. “The potential for North Korea to engage in large-scale sanctions circumvention by accessing prohibited goods and services directly with cryptocurrencies is a risk that could grow in significance.”

NK has big friends called Russia and China, they have enabled NK's nuclear program, they help them with goods, energy and money, and it happens on a scale that makes any crypto transactions of NK negligible. If someone really wanted to punish NK, they should punish Russia and China, but the West is too corrupt and scared to do anything.

[talkbitcoin]

90% of this so called "article" is filled with prejudiced and racism and mostly tries to spread some sort of FUD about bitcoin. the fact is the usage of bitcoin for illicit activities is far more common in the rest of the world rather than in a country like North Korea.
funny it should mention Wannacry ransomware and not mention the fact that the "backdoor" which this virus is using was placed inside the closed source Microsoft Windows by NSA intentionally!

[Thermytee]

Presently, North Korea is a major force in cybercrimes and international hacks which according to multiple sources is state sponsored. The sanctions by the US is affecting them and they're on the lookout for funds which makes them hack banks and exchanges. They're the best now in hacking and malware. With Russia and China by their side, it won't stop

[funchiestz]

Actually, it's not just North Korea. All Asian countries have a very different view of crypto assets. There's only question marks on China.

[DeathAngel]

Actually, it's not just North Korea. All Asian countries have a very different view of crypto assets. There's only question marks on China.

North Korea as a government may be into crypto heavily but the normal people will struggle to gain any access to bitcoin’s due to the restrictions they’re under.

[Baofeng]

It's because that's what North Korea is good, exploit every system in the world.  . But I'm disappointed though, the author needs a better job, he totally forgot to mentioned about the Lazarus group, https://en.wikipedia.org/wiki/Lazarus_Group. It's state sponsored, but I don't give a damn, North Korea has been doing this for ages though, that's why US and West are putting lots of trade sanctions against this country.

[jak3]

yes, it is bad, yet they don't have any choice. I don't think they are even willing to perform any kind of cybercrime but when your country is in danger(or so that they are being believed ) they have to take serious steps to save their country. we are as in outside of North Korea are free men and woman but they are not free. they are forced by their dictator and they think they are still in war with Americans. all we can do is ignore such type of activity and keep yourself safe.

[okala]

I don't know why most of the Asian countries always have this negative mindset towards any invention that does not originated from they region, I read recently where north Korea also hacked into some American companies operating in they region, North Korea have used cryptocurrencies for negative operations there by making it look as if crypto is the currency for the dark web and chasing other countries away due to the fear of being attack through cryptocurrency which have lead to them not adopting it in they countries.

[BitBustah]

I've always suspected that North Korea government has been mining cryptocurrency.  This gives them a good back up plan in case of economic disaster.  Its government run so its not like they have to worry about paying electricity bills.

[gentlemand]

North Korea’s established mining operations could offer an advantage over cybercrime insofar as mining newly minted cryptocurrencies with no indication that they have been tainted or associated with criminal activity attracts less attention,” the report continues.

I don't particularly buy any of this, but especially not that.

Electricity generation in the DPRK is patchy and dire. Even the capital is in the dark most of the time. I'd be amazed if they had the flexibility, consistency or capacity to keep up with the pace of mining.

As for them being the crypto boogeyman to evade sanctions, it makes perfect sense on the surface but they're saddling themselves with something that needs to be sold for fiat before they can meet their bills. Since dealing with the international banking system must be one of their biggest headaches, having to get rid of something most banks hate BEFORE they can get on with laundering it doubles the headache.

If I were Kim I'd stick to churning out those Super Dollars.

[jakelyson]

You love the good stuff bitcoin can bring, you have to love the dark side of it too. NO one can really control who uses and how they use cryptocurrency. I don't want what N. Korea is doing but there is nothing we can do against it.

[Haunebu]

You love the good stuff bitcoin can bring, you have to love the dark side of it too. NO one can really control who uses and how they use cryptocurrency. I don't want what N. Korea is doing but there is nothing we can do against it.

There is something that we can do about it. We can keep spreading the advantages that Bitcoin brings to the table in whatever way possible so that people would not focus too much on the dark side of Bitcoin as you mentioned.

It all comes down to what people remember at the end of the day.

[kryptqnick]

It's known that North Korea indeed uses cryptocurrencies. It is logical that they'd look for ways of avoiding the sanctions. However, like others said, it's not cryptos to blame for that. All sorts of money are used by bad people to do bad things. And it's not like the majority of the market is controlled by these bad people anyway.
Moreover, it's worth noting that while the article tries to make a point that cryptos are bad since North Korea is pro-crypto, this country actually commits crypto crimes like hacks of exchanges which are not in the interest of crypto users.

[Jating]

It's known that North Korea indeed uses cryptocurrencies. It is logical that they'd look for ways of avoiding the sanctions. However, like others said, it's not cryptos to blame for that. All sorts of money are used by bad people to do bad things. And it's not like the majority of the market is controlled by these bad people anyway.
Moreover, it's worth noting that while the article tries to make a point that cryptos are bad since North Korea is pro-crypto, this country actually commits crypto crimes like hacks of exchanges which are not in the interest of crypto users.

Yep, so as much as we hate North Korea, they learn how to embrace and take advantage of crypto to get away with sanctions for US. So it's really hard to blame them for getting into crypto even in the bad way.

On the other hand, they became self reliant themselves. I guess the downside is that they have been accused of hacking specially South Korean exchanges, which make crypto look bad and this is exploited b media and spread FUD.

[gilangIDR]

It's disappointing that some countries like North Korea adopt bitcoin in a negative way involving criminal activities. It's one of the reasons why some countries are afraid of the risk of adopting bitcoin because it could lead to insignificant usage
such as cybercrime. If ever they process traders' transactions, I guess we can't do anything about it because that's just a part of the transaction but it doesn't mean that we're complicit.

Cryptocurrencies are very easy to develop and anyone can create, distribute and use cryptocurrencies. So this depends on the elements that use it, even countries that use cryptocurrencies for criminal activities are legitimate because up to now there has been no regulation about the regulation. that's why the importance of regulation, so do we still need regulation of cryptocurrencies?