North Korea has quietly tested the sale of Non-Fungible Tokens (NFTs) in China as part of its broader strategy to generate foreign currency and circumvent international sanctions, according to a recent report by Daily NK. The covert operation, which ran from January to May, was carried out by technical experts from the Korea Computer Center, who posed as trade representatives in several Chinese cities.
Sources revealed that the team rented facilities under front companies—including a Beijing-based tourism business and a real estate firm in Zhuzhou, Hunan province—to conduct experiments in selling NFTs on overseas marketplaces. The aim: assess whether NFTs could serve as a viable channel for acquiring foreign currency through anonymous blockchain transactions.
“They weren’t necessarily interested in the NFTs themselves, but rather in the marketplaces and the infrastructure that allows for anonymous transfers of digital assets,” one source told Daily NK. The team reportedly focused on concealing ownership using blockchain wallets and shell companies registered in third countries.
The content minted into NFTs included images of Mount Kumgang, traditional Goryeo celadon, and internal maps of North Korean mining operations. These digital assets were listed on marketplaces in Southeast Asia, particularly in Thailand and the Philippines, chosen for their lax identity verification requirements.
After five months of experimentation, the team submitted a comprehensive report to authorities in Pyongyang on May 19 and promptly exited the country, leaving no physical trace behind.
While the project confirmed that NFT-based revenue generation is technically feasible, the final report concluded that significant legal, financial, and regulatory hurdles make it an impractical strategy for now. Legal risks in China, instability in Southeast Asian crypto markets, and high operational costs all contributed to the unfavorable assessment.
“This was only one of several avenues being tested to sidestep sanctions,” the source said. “Although not immediately viable, the insights gathered from this pilot will likely inform further efforts.”
The experiment underscores Pyongyang’s evolving approach to digital finance as it seeks alternative methods to fund its regime in the face of tightening economic sanctions.
