In a week where bitcoin had mixed price signals, one persistent topic that continued to rear its head was that of security. Money laundering and security breaches have plagued the crypto industry and this week saw new proposals pushed out to better monitor the sector.
Crypto, Regulations and Politics
North Korea is getting better at its game. A leaked United Nations report provided insight into Pyongyang’s sophisticated machinery which targets cryptocurrency exchanges as opportunities to steal funds for the state which are then funneled into its nuclear weapons program. Known for its exploits in breaching traditional financial institutions, Pyongyang’s cyber hacking capabilities now include exchanges and mining pools. The North Korean government is also reportedly using digital assets to launder cash. So far, North Korea has netted at least $2 billion from its illicit activities within the crypto sector.
South Korea andthe Czech Republic Develop Crypto Regulations
The fear of the unknown has forced some countries to take drastic steps to promote oversight of the crypto industry.
For instance, the Czech Republic has revealed that it will regulate its crypto sector beyond the standard recommendations. The European Union’s Fifth Anti-Money Laundering Directive (AMLD5) seeks to regulate the way exchanges and other asset custodians operate within member countries but the Czech Republic has broadened that umbrella by extending its oversight to cover every crypto firm in its jurisdiction.
Once these regulations are formalized, crypto firms like Braiins, the Prague-based company behind Slush Pool, would be required to register with the National Trade Licensing Office. Companies that fail to comply can expect a fine of $20,000 or more.
South Korea also revealed a new