Countries around the world are facing new challenges as digital currencies like Bitcoin become more popular and easier to use. One of the biggest concerns is whether some nations are using Bitcoin and other cryptocurrencies to get around international sanctions. Sanctions are rules set by groups of countries or global organizations that stop certain countries from trading, moving money, or doing business in certain ways. These rules are meant to pressure governments to change their behavior, especially when it comes to things like nuclear weapons, human rights abuses, or supporting terrorism.
Bitcoin and similar digital currencies work differently from regular money. They are not controlled by any single government or bank. Instead, they use a technology called blockchain, which is like a digital ledger that records every transaction. This makes it possible for people to send money across borders quickly and without needing permission from banks or governments. Because of this, some countries and groups have started to look at Bitcoin as a way to move money when traditional banking is blocked by sanctions.
One of the most well-known examples is North Korea. For years, North Korea has been under strict international sanctions because of its nuclear weapons program and other actions that many countries see as dangerous. These sanctions make it very hard for North Korea to earn money from trade or use regular banks to move funds. But reports from governments, financial experts, and blockchain analysts show that North Korea has turned to cryptocurrency to get around these restrictions.
North Korean hackers have carried out cyberattacks on cryptocurrency exchanges, which are platforms where people buy and sell digital currencies. These attacks have allowed North Korea to steal large amounts of Bitcoin and other cryptocurrencies. Once they have the digital money, they use a complex network of intermediaries, shell companies, and crypto wallets to move the funds and make it hard to trace where the money came from. For example, stolen crypto has been laundered through brokers in Russia, Hong Kong, and Cambodia. In some cases, local nationals in these countries have helped move the money offshore, making it even more difficult for authorities to track.
The scale of North Korea’s crypto crime is huge. Blockchain analytics firms estimate that North Korea has stolen more than $6 billion in cryptocurrency since the early 2020s. In just one year, 2025, North Korean actors are believed to have stolen over $2 billion in digital assets. These stolen funds are then used to support North Korea’s weapons programs, including its nuclear and missile development. The U.S. Treasury and other agencies have responded by imposing sanctions on North Korean individuals and entities involved in these activities, including bankers and IT workers who help launder the money.
But North Korea is not the only country that has been accused of using cryptocurrency to evade sanctions. Other nations under international sanctions, such as Iran and Venezuela, have also explored ways to use digital currencies to bypass financial restrictions. Iran, for example, has reportedly used cryptocurrency mining and trading to earn foreign currency when its access to the global banking system was limited. Venezuela launched its own state-backed cryptocurrency, the Petro, in an attempt to raise money and avoid U.S. sanctions on its oil exports.
The methods used by these countries are often sophisticated. They may use a mix of cybercrime, fake identities, and overseas IT workers to earn and move money. North Korean IT workers, for instance, have been found working remotely for companies in other countries, hiding their nationality and sending their earnings back to North Korea through cryptocurrency. Some of these workers have even been hired by major animation studios and tech firms in places like Japan, the United States, and the United Arab Emirates, without the companies knowing their true origins.
Governments and financial regulators are struggling to keep up with these new tactics. The speed and complexity of cryptocurrency transactions make it hard to detect and stop illicit flows of money. Traditional anti-money laundering tools are not always effective when dealing with digital currencies, especially when transactions are routed through multiple countries and intermediaries. As a result, authorities are calling for more cooperation between nations, better blockchain tracing technology, and stricter rules for crypto platforms and freelancing websites.
The rise of cryptocurrency has also led to new debates about the future of international finance and sanctions. Some experts argue that digital currencies could weaken the power of sanctions by giving countries new ways to move money outside the traditional banking system. Others believe that with the right regulations and enforcement, the risks can be managed. Either way, it is clear that the use of Bitcoin and other cryptocurrencies in sanctions evasion is a growing problem that will require ongoing attention from governments, financial institutions, and the global community.
As more countries and individuals adopt digital currencies, the challenge of preventing their misuse will only become more complex. The technology behind Bitcoin and similar assets continues to evolve, making it easier to send money across borders and harder for authorities to track. At the same time, the demand for ways to bypass sanctions is likely to remain strong in countries that face economic isolation. This means that the battle between those who want to enforce sanctions and those who seek to evade them will continue to play out in the world of cryptocurrency for the foreseeable future.