key takeaways:
- South Korea introduces a new bill designed to freeze North Korean cryptocurrency assets financing weapons programs.
- After 10 months of consultations, the revised legislation includes targeted methods for tracking and neutralizing stolen cryptocurrencies.
The South Korean government is set to introduce a bill aimed at tracking and freezing crypto assets stolen by North Korea, which are believed to fund its illicit weapons program, reported by JoongAng Daily.
This legislation follows a revised version of an earlier bill presented by the National Intelligence Service (NIS) in November 2022. After President Yoon Suk Yeol’s directive for further refinement, the updated bill has been developed through a 10-month consultation process involving various South Korean government ministries. Its primary objective is to bolster South Korea’s existing sanctions against North Korea.
Notably, this new legislation diverges significantly from the NIS’s initial proposal in November 2022. The revised bill introduces innovative methods to “track and neutralize” cryptocurrency and other digital assets obtained illicitly by North Korea. This departure from the earlier NIS proposal reflects a need to address these evolving challenges.
South Korea’s increased focus on this issue underscores its commitment to addressing a multifaceted problem. Beyond conventional weaponry, North Korea has shifted its attention to cyber warfare, expanding its arsenal to include digital assets that are harder to trace and easier to launder.
This move by South Korea highlights the intricate and evolving nature of modern security threats. As cryptocurrencies gain popularity, they become increasingly appealing targets for nations seeking to circumvent traditional financial systems and sanctions.
North Korean hackers have carried out a series of exploits, resulting in significant thefts of digital assets from various victims. As of August 18, TRM Labs, a blockchain intelligence firm, estimated that North Korean cyberattacks had led to losses of approximately $2 billion since 2018. Notably, in the year 2023 alone, North Korea was accountable for the theft of $200 million in cryptocurrency, representing a substantial 20% of the total stolen funds this year.
Reportedly, the latest iteration of the bill now incorporates provisions aimed at monitoring and mitigating the illicit use of virtual currencies and other cryptocurrency assets pilfered by North Korea through cyberattacks. Notably, these measures were absent from the initial bill introduced last year.
Furthermore, as part of its cybersecurity strategy, the Yoon administration plans to create a dedicated national cybersecurity committee directly overseen by the President. This committee will be responsible for implementing various initiatives to enhance the nation’s defenses against foreign cyber intrusion attempts.
