The large US cryptocurrency and bitcoin exchange Bittrex has stated that the claims of North Korean users using its platform is completely false, according to a tweet the exchange posted on April 22nd.
Bittrex has said that the errors have come from mistakes from users based in South Korea. The exchange has stated they’ve examined the 2 accounts which claim to be from North Korea recently, after investigating previously back in October of 2017.
The accounts are said to have been mis-labelled when the users who created them accidentally clicked North Korea in the dropdown menu during the verification process.
Questions raised over the alleged Bittrex North Korean accounts
First of all, a number of questions come up when investigating the story. The accounts have assumedly been active for over a year and a half since their creation during the 2017 bull run, and so the length of time between investigations is large – pointing to an improper resolution the first time around.
Additionally, the fact that users are able to select an option to come from North Korea is troubling on its own.
The most interesting observation, however, is how the exchange allows users to activate accounts when those users themselves state that they are from a country restricted from trading.
If users stating they are from North Korea are able to make an account, how many NK users are already active and trading covertly?
How exchanges vet their users is of prime importance in meeting their regulatory requirements. If controversy arises over users who have overtly stated that they are from North Korea, then how many users are from that nation state and are acting covertly on exchanges?
With the news that North Korea is taking cryptocurrency accumulation through hacks seriously, tighter regulations may have to be put in place to ensure that no one with malicious intent slips through the net.