North Korean trade officials operating in China are illegally selling cryptocurrency to Chinese nationals, with Pyongyang earning a fortune in foreign currency as a result.
According to a Daily NK source in China recently, North Korean trade officials have recently approached Chinese businesspeople to offer them cryptocurrency, selling them between 40,000 and 50,000 Chinese yuan (approximately $5,500 to $6,900) worth of digital assets at a time.
If potential customers express a desire to buy, North Korean trade officials use a VPN to connect to the crypto asset exchange Bybit and sell their cryptocurrency using the P2P (person-to-person) method.
Most Chinese businesspeople pay for the assets and the commission in cash right away. This is good for North Korean trade officials, the source said, because they can receive foreign currency immediately — in cash — without a bank transfer.
In particular, North Korean trade officials take a 20% commission on each sale. If they sell 50,000 yuan in cryptocurrency to a Chinese businessperson, they collect a 10,000 yuan (approximately $1,380) commission.
This is a much higher commission than is charged during official deals through an exchange. Nevertheless, many Chinese businesspersons wish to buy cryptocurrency through North Korean trade officials. In particular, Chinese businesspersons who want to invest overseas in Europe or Southeast Asia actively purchase cryptocurrency through North Korean trade officials.
Cryptocurrency circumvents Chinese financial controls
When Chinese nationals transfer foreign currency overseas to buy real estate or invest in foreign companies, they not only face restrictions from Chinese authorities but also strict procedures. However, cryptocurrency is free from inspections by the Chinese authorities, has no remittance ceilings and can be converted into dollars, making it a new option for Chinese nationals wishing to invest overseas.
Moreover, as more companies in Europe and Southeast Asia accept cryptocurrency payments, Chinese businesspeople interested in investing overseas have begun asking around for North Korean trade officials to buy cryptocurrency, even if they have no direct contact with them.
Through these cryptocurrency deals, the North Korean trade officials can meet wealthy Chinese businesspeople who are keen on foreign investments and encourage them to invest in North Korea. They can kill two birds with one stone — they can generate foreign currency income while at the same time discover new Chinese investors.
The North Korean trade officials in these deals usually work for large trading companies affiliated with the Reconnaissance Information General Bureau or the Ministry of Defense.
Powerful agencies with their own IT organizations that engage in illegal activities, such as cryptocurrency theft, generate foreign currency earnings of their own by selling cryptocurrency through officials with their affiliated trading companies.
“There are many North Korean trade officials in China, but not everyone can sell cryptocurrency,” the source said. “Trade officials with large trading companies connected with agencies like the Reconnaissance Information General Bureau sell cryptocurrency.”
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: dailynk.com
