20 March 2025 | 10:27 CAT
3-minute read

North Korea’s crypto fortune

In a world where digital finance is reshaping global economies, North Korea has emerged as a major player in the cryptocurrency market, reportedly holding over 13 562 Bitcoin, valued at approximately $1.14 billion. While the US and UK remain dominant in cryptocurrency holdings, North Korea’s wealth in this sector has raised eyebrows due to the methods employed to amass these digital assets.

Speaking on Radio Islam International’s Asia-Pacific Report, research associate at the Institute of Global Dialogue Sanusha Naidu highlighted the significance of these holdings, explaining that North Korea’s access to cryptocurrency allows it to bypass international sanctions. “Bitcoin provides that kind of financial security,” Naidu remarked, pointing out that the funds can be leveraged by the government for transactions that circumvent restrictions imposed by Western nations.

However, the accumulation of such wealth has not been without controversy. Reports indicate that much of North Korea’s cryptocurrency reserves originate from illicit cyber activities, including hacking and digital theft. “[A firm that] tracks blockchain transactions has linked North Korea’s Bitcoin to the Lazarus Group, a cybercriminal organisation responsible for the theft of approximately $659 million in cryptocurrency,” Naidu explained.

The revelation underscores the growing challenge of regulating digital finance in an era where nation-states exploit decentralised financial systems to evade economic sanctions. Naidu drew parallels with South Africa’s current geopolitical landscape, where concerns have arisen over potential US sanctions due to diplomatic ties with Iran.

India’s balancing act: China, Trump, and the Global Order

Shifting the focus to India, Naidu delved into Prime Minister Narendra Modi’s recent signals of a diplomatic thaw in relations with China, despite ongoing territorial disputes in Aksai Chin and Arunachal Pradesh. The historically tense relationship between India and China has been shaped by border conflicts, as well as China’s historical support for Pakistan. “The Modi government doesn’t see that as acceptable,” Naidu asserted, referring to the territorial disputes and their deep-rooted impact on India’s political psyche.

Interestingly, Modi’s call for improved relations with China comes alongside a reaffirmation of strong ties with former US President Donald Trump. Naidu noted that Modi’s rare podcast appearance served as a strategic move to emphasise India’s role in a shifting global order. “The 21st century is Asia’s century, and we want India and China to compete in a healthy way,” Modi reportedly stated, reinforcing his vision for regional cooperation without conflict.

Yet, this delicate balancing act is not without economic consequences. The Trump administration’s America First policies have already indicated possible tariff hikes on Indian goods, raising questions about the sustainability of Modi’s dual alignment with both China and the US. “There are tariffs coming on Indian goods,” Naidu warned, stressing that India will have to carefully navigate its economic strategy to avoid adverse impacts on trade relations.

China’s expanding footprint in the Pacific

Meanwhile, China’s influence continues to grow in the Pacific region, as more island nations turn to Beijing for economic and strategic partnerships. Kiribati, a small Pacific Island nation, recently terminated a contract with The Metals Company (TMC), a firm engaged in deep-sea mining exploration, thereby opening the door for Chinese investment.

Naidu contextualised the move within the broader geopolitical competition for critical minerals, which are essential for electric vehicles and advanced technology. “The government exercised its right of sovereignty over potential exploration,” she explained, suggesting that China’s engagement in the Pacific is a direct challenge to the influence of traditional Western allies such as the US, Australia, and France.

This development aligns with China’s broader strategy of securing access to vital resources in key regions. “We’re seeing these pivots becoming more competitive, trade conflicts intensifying, and investment contracts being re-evaluated,” Naidu concluded.

Listen to the Asia Pacific Report on Sabaahul Muslim with Moulana Junaid Kharsany.