The Korean newspaper "Chosun Ilbo" released a report on 11/6, which detailed the investigation by the United Nations sanctions committee on North Korea's alleged use of cryptocurrency and other means to evade sanctions.
In the
report, the committee accused "Marine China" of being a blockchain transport and logistics company registered in North Korea and based in Hong Kong, founded by a North Korean actor and allegedly owned and solely invested in by Julian Kim. It is rumored that another unnamed individual appointed by Kim Jong-un to lead the company has been found to have attempted multiple times to withdraw undisclosed cash from a bank in Singapore.
North Korea's intelligence department has been accused by the United Nations of being hackers proficient in stealing cryptocurrencies, even cultivating cyber hackers since childhood. Data shows that the cryptocurrencies stolen by North Korea in 2018 were converted into cash through at least 5,000 discrete transactions in multiple countries, making it difficult to trace money laundering activities.
The investigation mentioned that hackers from North Korea are using spear-phishing methods to conduct precise attacks, such as operations on a computer network of a bank in Bangladesh in 2016. Over the past three years, North Korea's spear-phishing attacks have targeted entities in seventeen countries, resulting in total losses of around $2 billion.
It is reported that North Korean hackers' strategies include laundering stolen Bitcoins (BTC) with malicious code on servers located at Kim Il-sung University in Pyongyang, a plan allegedly orchestrated by the government authorities. A recent
report mentioned that North Korea is seeking to develop its own central bank digital currency, although North Korea has so far denied this claim. If successful, this development would make it more convenient for North Korea to continue stealing cryptocurrencies.
Hong Kong Cryptocurrency Exchange Situation
The Securities and Futures Commission (SFC) of Hong Kong released a position paper on Wednesday regarding virtual asset exchanges, announcing a new
licensing scheme, where regulated cryptocurrency exchanges that offer security tokens will be treated like traditional brokers when dealing with "professional investors" as defined by the regulator.
However, under the new licensing conditions, regulated cryptocurrency exchanges can only offer products to the defined "professional investors." Companies can only change products or services after approval from the regulator, must maintain existing relationships with independent audit firms, and submit annual reports on trading activities. The SFC stated:
"Exchanges that have not been licensed or authorized to provide or deal in virtual asset futures contracts should not be granted a license or authorization to operate in such contracts."
Currently, internal issues in Hong Kong are severe, with some people considering cryptocurrencies as a guarantee of their assets, but it appears that government authorities are also intervening in this area.
Further Reading
- People's Bank of China's digital currency research department signs agreement with Huawei
- 【PA Weekly】China's blockchain industry welcomes new opportunities as Libra faces challenges
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