The Royal United Services Institute has released a report titled “Maintaining North Korea Sanctions in the Era of Decentralized Finance.” This report dives deep into the intricate world of cryptocurrency mixers and the challenges they pose to international sanctions. It exposes North Korea’s involvement in cybercrime and its use of mixers to launder illegally obtained cryptocurrency.
What is RUSI?
The Royal United Services Institute (RUSI) is the world’s oldest defence and security think tank, founded in 1831 by the Duke of Wellington. RUSI’s mission is to influence public debate to help build a safer and more stable world through cutting-edge defence and security research.
According to the report, North Korean operatives have siphoned off billions of dollars through cybercrime in the past decade. Their aim? To fund the Kim regime’s ballistic missile program and bolster their cyber capabilities. These illicit activities not only serve North Korea’s military agenda but also undermine UN sanctions, posing a serious threat to global security.
In response, a US-led coalition has stepped up efforts to crack down on virtual asset platforms, especially mixers, that facilitate money laundering. The report details the coordinated actions taken by US authorities and international partners, including sanctions, platform shutdowns, and asset seizures. It also explores innovative strategies to combat digital illicit finance, such as classifying all mixer transactions as inherently suspicious.
This report, funded by the US Department of State, is part of a series aimed at understanding and overcoming the challenges of implementing UN sanctions effectively. It offers a critical evaluation of the measures taken against non-compliant virtual asset platforms, highlighting both successes and limitations. Moreover, it outlines 14 recommendations for policymakers and practitioners, calling for expanded strategies and stronger partnerships to counter North Korean cyber threats.
In conclusion, this report emphasizes the importance of global collaboration and heightened standards in cybersecurity, anti-money laundering, and counter-terrorist finance to curb North Korea’s ability to profit from cybercrime. Stay tuned as we continue to follow developments on this critical issue.
