North Korea to evade US
September 28, 2018 6:50 am,
Two Washington financial experts state the increasing use of cryptocurrency by North Korea to evade by US Sanctions. Experts who deal with the investigation in intelligence collection and analysis, and also anti-money laundering and combating financing terrorism, Pyongyang is creating its own cryptocurrency and is likely also using popular ones like Bitcoin. The experts have claimed that this country is successfully trading existing cryptocurrency and creating its own, irrespective of the impositions on the existing fiat assets.
Further, the scheme is being analysed by the experts. So, initially, the government hires people who have convenient personal identifiable information to open a crypto wallet that can be used to trade the virtual currencies. Then the local miners transfer them to the European wallet where they are mixed and shifted to confuse the anti-money laundering and know your customer systems. The process ends with the Korean (north) nominees buying bitcoins, which are later converted into cryptocurrencies which are very popular like the Ethereum and Litecoin, to break the linear pattern of transactions.
The crypto asset’s point of origin is concealed, then the government has a chance to exchange the laundered coins to fiat, thus receiving dollars without sanctions attached. Having their own cryptocurrency could also facilitate their ability to open accounts online under the guise of non- adversarial nation using anonymous communication to conceal the user’s location and usage on the internet.
The researchers also said it the country would create its own Blockchain in order to alter the public record of transactions to show that these transactions are originating from legitimate sources. And they would also create their own currency wallet.
Other American rivals including Iran, North Korea, Russia, and Venezuela have all recently turned to cryptocurrency in order to counter economic pressure from US and allies. For example, Petro, Venezuela’s oil-backed crypto and this currency was banned from buying, selling or trading by any Americans. Also, Iran revealed the details of its crypto in response to the US led economic sanction. Its future crypto is being backed by fiat Rial.