South Korea Takes Stand Against North Korean Cryptocurrency Threats

The South Korean government has issued sanctions against four North Korean individuals and seven institutions, accusing them of financing "nuclear and missile development" through illegal cyber activities, including cryptocurrency theft.

"This marks the first time that the South Korean government has imposed independent sanctions against North Korea in the cyber sector," stated a notice from the Ministry of Foreign Affairs.

"Our aim is to raise awareness about the potential risks of virtual asset trading with North Korea, by including the virtual asset wallet addresses as identification information for these sanctions targets."

Also read: Investment Gurus Predict Next Bull Market For Cryptocurrencies

A pair of North Korean hacker groups are implicated in the theft of $100 million in cryptocurrency from Horizon Bridge, according to the U.S. Federal Bureau of Investigation.

A U.S.-blacklisted Ethereum ETH/USD wallet allegedly linked to the North Korean hacker group "Lazarus" was also involved in a $600-million hack last March.

The South Korean sanctions targeted individuals believed to have ties to Lazarus, including Park Jin Hyok of the Chosun Expo joint venture company, which is suspected of being a front for the hacker group.

The seven institutions facing sanctions are accused of participating in cyberattacks such as "hacking and theft of virtual assets" or training cyber experts, according to the notice.

Under South Korean regulations, trading cryptocurrency with a blacklisted entity is forbidden without prior permission from the Financial Services Commission.

The country's regulations also prohibit financing terrorism, which includes cryptocurrency transactions.

Next: PayPal's Crypto Holdings Reach $604M, Bitcoin Dominates At $291M

Photo via Shutterstock.