North Korea vs United States
Crypto regulation comparison
North Korea
United States
North Korea does not allow civilian cryptocurrency use. The regime has been accused by the UN and US of using state-sponsored hacking to steal cryptocurrency to fund weapons programs.
The United States has the world's most complex crypto regulatory landscape, with overlapping federal and state jurisdictions. The SEC regulates crypto securities and has pursued enforcement actions against exchanges and token issuers. The CFTC oversees crypto derivatives and considers Bitcoin a commodity. FinCEN applies BSA requirements to crypto exchanges as money service businesses. The IRS taxes crypto as property: short-term gains at income tax rates (10-37%), long-term gains at 0-20%. New 1099-DA broker reporting rules take effect from 2025. Multiple states have their own requirements, with New York's BitLicense being the most stringent.
Key Points
- No civilian cryptocurrency use permitted
- State-sponsored crypto theft alleged by UN and US
- Lazarus Group linked to major crypto exchange hacks
- International sanctions restrict all financial activities
- Cryptocurrency used by state actors, not civilians
Key Points
- SEC regulates crypto as securities under Howey test; major enforcement actions (Ripple, Coinbase, Binance)
- CFTC classifies Bitcoin and Ether as commodities; oversees derivatives markets
- IRS treats crypto as property: short-term gains taxed at 10-37%, long-term (1yr+) at 0-20%
- FinCEN requires exchanges to register as MSBs and comply with BSA/AML requirements
- 1099-DA broker reporting for centralized exchanges effective from tax year 2025
Sources
- IRS - Digital Assets
- CFTC - Digital Assets
- SEC - Crypto Task Force
- Congress - GENIUS Act (S.1582)
- FinCEN - Mining Ruling (FIN-2014-R001)
- IRS - FAQ on Digital Asset Transactions
- IRS - Capital Gains and Losses Topic 409
- FinCEN - Virtual Currency Guidance (FIN-2013-G001)
- IRS - Digital Asset Reporting and Tax Requirements