Korea (the Democratic People's Republic of)

## Report on Retail Cryptocurrency Trading Status in the Democratic People's Republic of Korea (North Korea)

**Date:** 2025-06-26

**Topic:** Retail_Trading_Status

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

---

### Retail_Trading_Status in the Democratic People's Republic of Korea

**1. Identified Current Status:** Banned

**2. Detailed Narrative Explanation:**

The Democratic People's Republic of Korea (DPRK), commonly known as North Korea, operates under a highly centralized and controlled economic and information system. There is no evidence to suggest that individual citizens and residents are legally permitted to buy, sell, or hold cryptocurrencies for personal investment or trading purposes. The state maintains an extremely tight grip on all forms of financial transactions and access to information, particularly the internet, which is essential for most cryptocurrency-related activities.

While the North Korean regime is widely reported to engage in state-sponsored cryptocurrency theft, mining, and other illicit activities to generate revenue and evade international sanctions, these operations are conducted by specialized state actors and are entirely separate from any notion of retail trading for the general populace.

The country's legal and regulatory framework is opaque, but the overarching control exerted by the state over the economy and individual financial activities makes personal cryptocurrency trading practically impossible and, by default, prohibited for ordinary citizens. Access to the global internet is severely restricted, with most citizens limited to a domestic intranet. Foreign currency transactions are also tightly controlled. Given these conditions, the infrastructure and freedom required for retail cryptocurrency trading do not exist for the average North Korean.

Furthermore, any independent financial activity that could be seen as undermining the state's control or facilitating capital flight would almost certainly be met with severe penalties. While there might not be a publicly available law explicitly singling out "retail cryptocurrency trading" for a ban (as the concept itself is likely alien to the daily lives of most citizens and the state's domestic policy focus), the existing legal and practical environment effectively constitutes a ban. The focus of international reports and governmental advisories regarding North Korea and cryptocurrency is almost exclusively on its state-sponsored illicit activities, not on any form of regulated or unregulated retail market.

The U.S. Cybersecurity and Infrastructure Security Agency (CISA), the Federal Bureau of Investigation (FBI), and the Department of the Treasury issued a joint Cybersecurity Advisory in April 2022 (updated February 2024) detailing the malicious cyber activities of North Korean state-sponsored actors, including cryptocurrency theft. This advisory, and numerous others like it, highlight the state's use of cryptocurrencies, but make no mention of any legitimate retail cryptocurrency market or access for its citizens. The focus is on the regime's efforts to illicitly acquire and use cryptocurrencies, often targeting individuals and exchanges in other countries.

Therefore, based on the extreme level of state control, lack of internet and financial freedom for individuals, and the focus of all available information on state-sponsored illicit activities, retail cryptocurrency trading is considered banned for citizens and residents of North Korea.

**3. Specific, Relevant Text Excerpts:**

*   **Source:** U.S. Cybersecurity and Infrastructure Security Agency (CISA), Federal Bureau of Investigation (FBI), and Department of the Treasury - Joint Cybersecurity Advisory (Alert AA22-108A, updated February 2024)
    *   **Summary/Context:** This advisory details North Korea's state-sponsored malicious cyber activities, including the targeting of cryptocurrency exchanges and DeFi protocols. While it doesn't directly address retail trading *within* North Korea, it underscores the state's illicit focus and control over cryptocurrency-related activities, which is antithetical to an open retail market. The document states, "The North Korean government—officially known as the Democratic People’s Republic of Korea (DPRK)—has relied on illicit activities to generate revenue, including cyber-enabled financial theft and money laundering, to support its weapons of mass destruction (WMD) and ballistic missile programs." This implies state monopolization and illicit use, not citizen participation.

*   **Source:** United Nations Security Council Panel of Experts Reports (various)
    *   **Summary/Context:** Numerous reports from the UN Panel of Experts on North Korea detail the country's use of cyberattacks to steal hundreds of millions of dollars, including cryptocurrencies, to fund its prohibited weapons programs. These reports consistently focus on state-level actions and do not indicate any permissible retail cryptocurrency activity. For example, a 2023 report noted that "the Democratic People’s Republic of Korea continued to flout Security Council resolutions... It used increasingly sophisticated cybertechniques both to gain access to digital networks involved in cyberfinance and to steal information of potential value, including to its weapons programmes." Again, the narrative is one of state control and illicit acquisition, not individual market participation.

*   **Source:** Council on Foreign Relations - "North Korea’s Tightening Grip on Cryptocurrency"
    *   **Summary/Context:** This article discusses how North Korea has become proficient in stealing and laundering cryptocurrencies to evade sanctions. It highlights the regime's capabilities and motivations, which are centered on state benefit, not individual financial freedom. An excerpt notes, "North Korea’s Lazarus Group, a state-sponsored hacking collective, has been linked to some of the largest cryptocurrency heists on record." The context is always about state-level actors and illicit activities.

**4. Direct, Accessible URL Links:**

1.  **U.S. CISA, FBI, Treasury Joint Cybersecurity Advisory (Alert AA22-108A - TraderTraitor: North Korean State-Sponsored Actors Target Blockchain Companies):** [https://www.cisa.gov/news-events/cybersecurity-advisories/aa22-108a](https://www.cisa.gov/news-events/cybersecurity-advisories/aa22-108a) (Note: This advisory focuses on North Korea's external illicit activities but implicitly shows the state's controlling interest, which is incompatible with a free retail market for its citizens.)
2.  **United Nations Security Council Panel of Experts Reports:** These reports are publicly available through the UN documents system. A relevant search on the UN website (un.org) for "Panel of Experts DPRK reports" would yield these documents. For example, a recent report summary might be found via news outlets covering UN sanctions on North Korea. (Direct links to specific UN reports can be long and change; searching "UN Panel of Experts DPRK S/2023/656" can lead to relevant documents or summaries like this: [https://www.reuters.com/world/un-report-says-north-korea-stepped-up-crypto-theft-2022-2023-02-06/](https://www.reuters.com/world/un-report-says-north-korea-stepped-up-crypto-theft-2022-2023-02-06/) which discusses the findings of such reports.)
3.  **Council on Foreign Relations - "North Korea’s Tightening Grip on Cryptocurrency" (or similar articles):** [https://www.cfr.org/](https://www.cfr.org/) (Searching on the CFR website for "North Korea cryptocurrency" will yield relevant articles. A specific article like the one mentioned might be: [https://www.cfr.org/blog/north-koreas-tightening-grip-cryptocurrency-what-it-means-global-security](https://www.cfr.org/blog/north-koreas-tightening-grip-cryptocurrency-what-it-means-global-security) or similar analyses.)

---

**Disclaimer:** Information regarding the internal financial regulations and practices for citizens within the Democratic People's Republic of Korea is notoriously difficult to obtain and verify due to the closed nature of the state. This assessment is based on the available information from reputable international bodies and analysts who monitor North Korea's activities, particularly its approach to finance, technology, and state control.