Not enough is being done to prevent North Korea hacking crypto, Japani Government leaders have indicated at the latest G7 central bank governors and finance ministers’ summit.
Per nikkiAn unnamed “high-ranking official” from the Japanese Ministry of Finance explained that North Korea is currently “able to continue with its missile and other activities” despite the sanctions.
The official claimed that Pyongyang was involved in “improper actions related to cryptocurrencies, including the theft of tokens.”
Tokyo signaled that other countries needed to follow its lead, and perhaps Washington’s too, in helping deter North Korean attacks.
A Separate Nikkei Report This included claims from blockchain analysis firm Elliptic.
The company alleged that most of the cryptocurrency stolen by Pyongyang was taken from Japanese targets.
The company claimed that hacker groups affiliated with North Korean government organs have stolen “$721 million” worth of cryptocurrency from Japan since 2017.
The media outlet added:
,[Per figures from] According to the Japan Foreign Trade Organization, the $721 million stolen from Japan is 8.8 times the value of North Korea’s exports in 2021.
North Korean hackers were also blamed for raiding Vietnamese crypto sites and wallets worth $540 million.
And Elliptic claimed that $497 million was stolen from the United States.
Elliptic claims to have allegedly raided Hong Kong wallets and platforms worth $281 million since 2017.
What drives Japan’s push to regulate crypto and crack down on North Korea?
Japan is attempting to use its G7 and G20 presidencies to bring crypto regulation and sanctions to the fore of discussions.
Host countries have the right to add items to the G7 agenda.
The last time Japan held the presidency of the G20, it responded by Issuing attendees with a “Crypto Manual”.
The documents show how Tokyo implemented one of the strictest crypto regulatory regimes in the world.
Tokyo claimed that its decision to do so was guided by several hacks on major crypto platforms.
Japan is hopeful that the fall of ftx The platform will last year inspire fellow G7 members to action.
And it appears that Tokyo has already achieved some degree of success on this front.
Last week, media outlets reported that the finance minister and central bank governor were set to issue a joint statement on crypto.
He pledged to “implement an effective regulatory and supervisory framework” for crypto.
While Japan has yet to realize its wish of achieving a G7-wide agreement on streamlining sanctions and regulation, finance chiefs last week reaffirmed the need for rules to “prevent client harm and money laundering”. “
Blockchain analysis firms claim Pyongyang Uses a series of coin mixers to launder stolen crypto,