Korea (the Democratic People's Republic of)
Retail_Trading_Status
- Analysis ID
- #702
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- 2025-12-12 04:42
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Executive Summary
Retail cryptocurrency trading is effectively banned in the Democratic People's Republic of Korea (DPRK) for ordinary citizens. While the regime itself actively engages in state-sponsored cryptocurrency theft and mining to evade sanctions, domestic possession of foreign currency and access to the global internet are criminal offenses punishable by forced labor or death. There is no legal framework permitting private individuals to buy, sell, or hold digital assets, and the state maintains a total monopoly on all financial and cross-border activities.
Key Pillars
State Security Department (Enforcement of information/currency controls)
Central Bank of the Democratic People's Republic of Korea (Monopoly on currency issuance)
Criminal Code of the DPRK (Prohibitions on foreign currency and private enterprise)
Law on Rejecting Reactionary Thought and Culture (Ban on external information/internet)
Landmark Laws
Criminal Law of the DPRK (2015 Revision) (Articles 104-111 (approximate)) - Enacted: 2015-01-01
- Criminalizes the unauthorized purchase, exchange, or use of foreign currency and 'illegal commercial activities' for profit. Violators face sentences of reform through labor.
- Source
Law on Rejecting Reactionary Thought and Culture (N/A) - Enacted: 2020-12-01
- Imposes severe penalties, including the death penalty, for accessing foreign media or information (including the global internet required for crypto trading).
Mobile Telecommunications Law (Revised) (N/A) - Enacted: 2022-01-01
- Prohibits the use of mobile phones registered under false names ('daepo phones'), which are often used to access foreign networks near the Chinese border.
Considerations
State Monopoly vs. Retail Ban: The regime is a major global actor in crypto theft (Lazarus Group) but strictly prohibits citizen participation.
Infrastructure Barrier: The 'Kwangmyong' intranet isolates citizens from the global internet, making retail trading technically impossible without illegal foreign devices.
Capital Punishment: Economic crimes involving large sums or foreign influence can technically carry the death penalty under 'anti-state' clauses.
Currency Controls: Crypto is treated as illicit foreign currency; possession is a direct violation of the state's financial monopoly.
Notes
The analysis distinguishes between the State (which is a crypto 'whale') and the Citizen (who is banned from the activity). Do not confuse DPRK regulations with South Korean (ROK) laws like the 'Virtual Asset User Protection Act', which appear frequently in search results for 'Korea'.
Remaining Uncertainties
- Specific enforcement statistics for crypto-related crimes within DPRK (data is state secret).
- Whether a specific internal circular exists explicitly naming 'Bitcoin' or 'Virtual Assets' as contraband, or if prosecutors rely solely on generic 'foreign currency' laws.
Detailed Explanation
Detailed Explanation
In the Democratic People's Republic of Korea (DPRK), retail cryptocurrency trading is comprehensively banned for ordinary citizens. The state maintains a total monopoly on all financial and cross-border activities, and private individuals have no legal framework permitting them to buy, sell, or hold digital assets. This prohibition is enforced through a combination of draconian laws and strict information controls. The regime's own Criminal Law, particularly the 2015 revision, criminalizes the unauthorized purchase, exchange, or use of foreign currency and 'illegal commercial activities' for profit, with violations punishable by reform through labor. Cryptocurrency is treated as illicit foreign currency, making its possession a direct violation of the state's financial monopoly held by the Central Bank of the DPRK. The State Security Department enforces these currency and information controls, ensuring the populace is isolated from global financial systems. The technical infrastructure itself acts as a formidable barrier, as the national 'Kwangmyong' intranet isolates citizens from the global internet required for crypto trading. Accessing foreign networks or information is a severe crime under the Law on Rejecting Reactionary Thought and Culture, enacted in December 2020, which imposes penalties up to the death penalty for accessing foreign media. Furthermore, the revised Mobile Telecommunications Law from 2022 prohibits the use of mobile phones registered under false names, which are often used to illegally access foreign networks near borders. This creates a dual reality where the DPRK state, through entities like the Lazarus Group, is a major global actor in cryptocurrency theft and mining to evade sanctions, while simultaneously imposing a complete ban on its citizens, with violations potentially punishable by forced labor or death under anti-state clauses for economic crimes involving foreign influence.
Summary Points
I. Regulatory Status
- Retail cryptocurrency trading is effectively banned for ordinary citizens.
- There is no legal framework permitting private individuals to buy, sell, or hold digital assets.
- The state maintains a total monopoly on all financial and cross-border activities, including state-sponsored crypto theft and mining.
II. Key Regulatory Bodies
- State Security Department: Primary enforcer of information and foreign currency controls against the populace.
- Central Bank of the Democratic People's Republic of Korea: Holds the monopoly on currency issuance; crypto is treated as illicit foreign currency.
- Criminal Code of the DPRK: The foundational legal instrument prohibiting private financial enterprise and foreign currency use.
III. Important Legislation
- Criminal Law of the DPRK (2015 Revision), enacted 2015-01-01:
- Articles 104-111 (approximate) criminalize the unauthorized purchase, exchange, or use of foreign currency and 'illegal commercial activities' for profit.
- Violators face sentences of reform through labor.
- Law on Rejecting Reactionary Thought and Culture, enacted 2020-12-01:
- Imposes severe penalties, including the death penalty, for accessing foreign media or the global internet, which is required for crypto trading.
- Mobile Telecommunications Law (Revised), enacted 2022-01-01:
- Prohibits the use of mobile phones registered under false names ('daepo phones'), which are often used to illegally access foreign networks near the Chinese border.
IV. Compliance Requirements
- For private citizens, there are no compliance requirements for cryptocurrency activity, as all such activity is illegal.
- The only permissible crypto-related activity is conducted by the state itself for sanctions evasion and revenue generation.
V. Notable Restrictions or Limitations
- Infrastructure Barrier: The national 'Kwangmyong' intranet isolates citizens from the global internet, making retail trading technically impossible without illegal foreign devices.
- Currency Controls: Cryptocurrency is treated as illicit foreign currency; possession violates the state's financial monopoly.
- Capital Punishment Risk: Economic crimes involving large sums or foreign influence can be prosecuted under 'anti-state' clauses, which technically carry the death penalty.
- Information Control: Accessing foreign information or networks for any purpose, including crypto, is a severe criminal offense.
VI. Recent Developments or Notes
- The analysis must distinguish between the State (a major crypto 'whale' and threat actor) and the Citizen (who is completely banned).
- Do not confuse DPRK regulations with South Korean (ROK) laws; they are entirely separate jurisdictions.
- The legal environment is defined by total prohibition for individuals, enforced through national security and anti-capitalist legislation.
Full Analysis Report
Full Analysis Report
The regulatory status of retail cryptocurrency trading in the Democratic People's Republic of Korea (North Korea) is 'Banned', characterized by a total prohibition on private ownership of foreign financial assets and access to the global internet. Unlike jurisdictions with specific 'Virtual Asset Service Provider' laws, the DPRK manages crypto through its broader Criminal Code, which strictly forbids citizens from possessing foreign currency or engaging in private commercial enterprise. Articles within the Criminal Code (specifically those addressing foreign currency management and illegal commerce) mandate sentences of 'reform through labor' for individuals caught exchanging or hoarding non-state-approved currencies.
Operationally, the environment for retail trading is non-existent. The domestic internet, 'Kwangmyong', is a closed intranet with no connection to global crypto exchanges. Access to the World Wide Web is reserved for a tiny elite and state cyber-warfare units. Consequently, any attempt by an ordinary citizen to trade cryptocurrency requires the commission of multiple serious crimes: possessing an illegal mobile phone (often smuggled from China), accessing the foreign internet, and holding illicit foreign assets. Reports from defectors and monitoring groups indicate that the regime actively tracks and punishes the use of unauthorized mobile devices near the Chinese border, which are the only theoretical means for a citizen to access a blockchain network.
Paradoxically, the North Korean state is one of the world's most active entities in the cryptocurrency space. State-sponsored hacking groups, such as the Lazarus Group, are accused by the UN and US Treasury of stealing billions of dollars in digital assets to fund the country's weapons programs. This creates a dual reality where the government utilizes crypto as a strategic tool for sanctions evasion while simultaneously criminalizing its use by the populace to maintain total social and economic control.
Recent legal shifts, such as the 'Law on Rejecting Reactionary Thought and Culture' (2020) and revisions to the Mobile Telecommunications Law, have further tightened these restrictions. These laws aim to eradicate 'anti-socialist' behavior, which includes exposure to foreign markets and information. As a result, while there is no specific 'Bitcoin Ban Act' by name, the overlapping prohibitions on internet access, foreign currency, and private accumulation of wealth render retail trading illegal and punishable by severe state violence.
The regulatory status of retail cryptocurrency trading in the Democratic People's Republic of Korea (North Korea) is 'Banned', characterized by a total prohibition on private ownership of foreign financial assets and access to the global internet. Unlike jurisdictions with specific 'Virtual Asset Service Provider' laws, the DPRK manages crypto through its broader Criminal Code, which strictly forbids citizens from possessing foreign currency or engaging in private commercial enterprise. Articles within the Criminal Code (specifically those addressing foreign currency management and illegal commerce) mandate sentences of 'reform through labor' for individuals caught exchanging or hoarding non-state-approved currencies. Operationally, the environment for retail trading is non-existent. The domestic internet, 'Kwangmyong', is a closed intranet with no connection to global crypto exchanges. Access to the World Wide Web is reserved for a tiny elite and state cyber-warfare units. Consequently, any attempt by an ordinary citizen to trade cryptocurrency requires the commission of multiple serious crimes: possessing an illegal mobile phone (often smuggled from China), accessing the foreign internet, and holding illicit foreign assets. Reports from defectors and monitoring groups indicate that the regime actively tracks and punishes the use of unauthorized mobile devices near the Chinese border, which are the only theoretical means for a citizen to access a blockchain network. Paradoxically, the North Korean state is one of the world's most active entities in the cryptocurrency space. State-sponsored hacking groups, such as the Lazarus Group, are accused by the UN and US Treasury of stealing billions of dollars in digital assets to fund the country's weapons programs. This creates a dual reality where the government utilizes crypto as a strategic tool for sanctions evasion while simultaneously criminalizing its use by the populace to maintain total social and economic control. Recent legal shifts, such as the 'Law on Rejecting Reactionary Thought and Culture' (2020) and revisions to the Mobile Telecommunications Law, have further tightened these restrictions. These laws aim to eradicate 'anti-socialist' behavior, which includes exposure to foreign markets and information. As a result, while there is no specific 'Bitcoin Ban Act' by name, the overlapping prohibitions on internet access, foreign currency, and private accumulation of wealth render retail trading illegal and punishable by severe state violence.
Source Evidence
Primary and secondary sources cited in this analysis
"A person who violates the order of foreign currency management shall be sentenced to a term of short-term labour... A person who has purchased currency... for selfish purposes shall be sentenced to a term of short-term labour."
"The DPRK continues to use agents and proxies to access the international financial system... in support of its unlawful WMD and ballistic missile programs."
"This Law is enacted for the purpose of taking stringent measures for the prevention of money laundering... ensuring the integrity of the country's financial system."
"Keeping assets in cash... puts officials at risk of detection... If discovered, their assets would likely be confiscated."
"Individuals have been arrested and punished severely for accessing foreign media... Law on Rejecting Reactionary Thought and Culture."
Web Sources (8)
Sources discovered via web search grounding
Search queries used (9)
- North Korea crypto ban for individuals
- can north korean citizens own bitcoin
- North Korea cryptocurrency regulation retail trading legal status
- "Democratic People's Republic of Korea" cryptocurrency laws for citizens
- DPRK laws on virtual assets retail
- penalty for internet access North Korea
- North Korea criminal code private ownership of foreign currency
- North Korea mobile phone crypto trading legality
- "Democratic People's Republic of Korea" law on foreign currency possession
https://www.unodc.org/cld/uploads/res/document/prk/2016/the_law_of_the_democratic_peoples_republic_of_korea_on_anti-money_laundering_and_combating_financing_of_terrorism_html/20160512_DPRK_Law_on_AML_and_CFTEnglish.doc
https://www.hrw.org/news/2013/05/15/north-korea-stop-crackdown-economic-crimes
https://complyadvantage.com/insights/north-korea-cryptocurrency-sanctions/
https://www.dailynk.com/english/north-korea-cracks-down-users-falsely-registered-cell-phones/
https://monitor.civicus.org/explore/north-korea-laws-used-to-crack-down-on-access-to-foreign-media-and-mobile-phones-with-harsh-punishments/
https://www.unodc.org/cld/uploads/res/document/prk/criminal_law_of_the_democratic_peoples_republic_of_korea_2015_html/Criminal_Law_of_the_Democratic_Peoples_Republic_of_Korea_2015.pdf
https://www.csis.org/analysis/north-koreans-want-external-information-kim-jong-un-seeks-limit-access
https://qz.com/633867/north-koreans-are-risking-their-lives-to-use-black-market-smartphones-from-china