South Korean Government Will Create Bill To Track And Freeze North Korean Crypto Assets

South Korea made a bill that would track and freeze North Korean crypto and virtual assets (photo: dock. pexels)

The South Korean government is reportedly planning to submit a bill that will track and freeze North Korean crypto and virtual assets used to fund illegal weapons programs.

According to a report by local media, Korea JoongAng Daily, several government sources who do not wish to be identified have confirmed on August 3 that the bill is in process.

A government official who remains anonymous said in the report said the bill would reflect the president's belief that the country's cybersecurity framework needs to be improved.

Another source who did not wish to be named and worked in administration said that the latest version of the bill contained ways to "track and neutralize" crypto and other virtual assets stolen by North Korea through hacking. According to the report, this was not included in the initial bill proposed by the National Intelligence Agency (NIS) in November 2022.

In addition to the new cybersecurity bill, the government is also reportedly planning to set up a national cybersecurity committee under the direct control of the president. The committee will enforce various measures to increase national defense against hacking attempts by foreign entities.

According to the report, the committee will be led by the Head of the National Security Office and will involve the NIS director.

North Korean hackers have stolen large amounts of digital assets from various victims through multiple hacks. On August 18, blockchain intelligence firm TRM Labs estimated that around $2 billion had been lost due to North Korea's cyberattacks since 2018. The data show that only in 2023, North Korea was responsible for the 200 million worth of crypto theft, which is 20% of the entire fund stolen this year.

Meanwhile, the United States Federal Bureau of Investigation (FBI) is also trying to track down hackers backed by the North Korean state. On August 23, the FBI marked six Bitcoin wallets linked to a North Korean hacking group called Lazarus. The wallet contains 1,580 Bitcoins worth about US$40 million (Rp607.2 billion) which is believed to have been looted from various hacks.