South Korea has announced plans to review its sanctions framework following growing concerns over North Korea’s use of cryptocurrencies for illicit financing activities.
The move comes shortly after the United States unveiled new crypto-related sanctions targeting Pyongyang. U.S. officials allege that North Korea has been leveraging cyberattacks and crypto thefts to fund its nuclear and missile programs.
Analysts say the development highlights the increasing role of state-level oversight and regulation in the crypto sector. Given the market’s sensitivity to geopolitical risk, volatility and uncertainty may rise as investors react to renewed concerns over state-backed crypto exploitation.
