Cryptocurrency is not legal in North Korea, with no known regulations or legislation specifically addressing digital assets in the country (1). The legal status of cryptocurrency in North Korea remains unclear due to the country's secretive nature and lack of transparent legal frameworks (1). Despite the absence of clear domestic regulations, North Korea has become internationally notorious for its extensive involvement in cryptocurrency-related cybercrime and theft to circumvent international sanctions (2).
The Democratic People's Republic of Korea continues to use agents and proxies to access the international financial system to conduct illicit financial activities, including fraudulent IT work, digital assets heists, and money laundering, in support of its unlawful weapons of mass destruction and ballistic missile programs (2). In January 2025, the U.S. Treasury Department sanctioned individuals and entities involved in a network that launders millions of dollars of illicit funds generated by DPRK IT workers and cybercrime to support the North Korean government (2).
"As the DPRK continues to use complex criminal schemes to fund its WMD and ballistic missile programs—including through the exploitation of digital assets—Treasury remains focused on disrupting the networks that facilitate this flow of funds to the regime."
Sim Hyon Sop, a PRC-based representative of the DPRK's Korea Kwangson Banking Corp, orchestrates vast money laundering schemes involving digital assets to funnel money back to North Korea for use in its weapons programs (2). Between early 2022 and approximately September 2023, UAE-based individuals laundered several million dollars through cryptocurrency cash-outs and money mules on behalf of sanctioned DPRK operatives (2). These illicit activities contribute to the DPRK's destabilization efforts and violations of United Nations Security Council sanctions (2).
Source:
https://freemanlaw.com/cryptocurrency/north-korea/
https://home.treasury.gov/news/press-releases/jy2752
Last updated: 19-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
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