The South Korean government is taking a proactive approach to combat North Korea’s use of cryptocurrency assets for its weapons program. According to a report by Korea JonngAng Daily on September 4th, the government plans to submit a bill that will enable it to track and freeze crypto assets linked to North Korea.
The bill was initially introduced by the National Intelligence Service in November 2022. However, it didn’t reach its final form overnight. President Yoon Suk Yeon requested revisions, which led to a ten-month-long process involving collaborations with various government agencies. This demonstrates the government’s commitment to ensuring the bill’s effectiveness.
One notable inclusion in the revised bill is the provisions for monitoring and mitigating cryptocurrency assets stolen by North Korea through hacking activities. This move reflects the government’s recognition of the crucial role played by these ill-gotten assets in North Korea’s funding of its weapons program.
In addition to addressing stolen crypto assets, the bill seeks to augment the sanctions against North Korea. The country is already facing severe economic sanctions from Western powers and allies, and its reliance on illicit funds and crypto assets has been increasing. By enhancing existing sanctions, South Korea aims to exert further pressure on the neighboring nation.
North Korea has been accused by the United Nations and other Western superpowers of sponsoring hackers who exploit crypto projects to finance their weapons program. The U.S., for example, has traced several crypto breaches back to North Korea-affiliated hacker-controlled wallets. One high-profile incident was the Ronin bridge exploit, where over $600 million in assets were stolen.
Tracking and freezing crypto assets used by North Korea is crucial in impeding its weapons program. By monitoring these assets, the South Korean government can take swift actions to disrupt the flow of funds and prevent further advancements in North Korea’s military capabilities. This proactive approach highlights the government’s determination to protect regional security.
The South Korean government’s bill not only serves as a tool to address North Korea’s illicit activities but also as a means of safeguarding the legitimacy and integrity of the crypto industry. By cracking down on the misuse of crypto assets for nefarious purposes, the government aims to establish a safer and more secure environment for crypto transactions.
The South Korean government’s plan to submit a bill enabling the tracking and freezing of North Korean crypto assets signifies a proactive approach in combating the neighboring nation’s illicit activities. With provisions for monitoring stolen assets and augmenting sanctions, the bill aims to impede North Korea’s weapons program and exert further pressure on the country. By addressing the exploitation of crypto projects and safeguarding the legitimacy of the crypto industry, South Korea seeks to establish a safer and more secure environment for both domestic and international crypto transactions.