Report: How Countries Are Reshaping Global Finance with Crypto

TRM’s report shows that crypto is now embedded in the state’s economic and security planning, rather than being treated as a peripheral asset.

A new report from blockchain intelligence firm TRM Labs has revealed that governments around the world are no longer on the sidelines of the crypto markets, with states from North Korea to Singapore actively putting blockchain networks to work as part of their national financial strategies.

However, there is a disconnect between how authoritarian and democratic governments use digital assets, and this is turning crypto into a silent but powerful force in global finance and geopolitics, according to the report.

Crypto goes from market experiment to state instrument

According to TRM, the borderless design of blockchain allows countries to move value outside the traditional systems built around the US dollar, SWIFT and correspondent banks, with authoritarian regimes relying heavily on this feature.

North Korea emerges as the most aggressive example. The company linked the country’s cyber units to exchange, DeFi and bridge hacks worth billions of dollars, including the high-profile Bybit breach in February 2025.

Researchers have traced how stolen funds were routed through mixers, transported across blockchains, converted into stablecoins, and ultimately paid out through over-the-counter brokers in Asia. Those proceeds, TRM said, flow back to Pyongyang’s missile and nuclear programs.

Russia, for its part, has taken a different route since facing sweeping sanctions following its 2022 invasion of Ukraine. While digital assets have not replaced traditional finance, TRM data shows they are now playing a supporting role in cross-border settlements with partners like Iran, fundraising for pro-Russian groups and large-scale mining operations that convert cheap energy into foreign currency.

Meanwhile, Iran legalized Bitcoin mining in 2019 and is using domestically mined BTC to pay for imports while bypassing payment restrictions, according to the report.

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A Split Path for the Future of Crypto

Not all state use of crypto is hostile. The study portrayed democratic governments as focusing on oversight, transparency and market stability.

In the US and Europe, for example, agencies now rely on blockchain analytics to track ransomware payments, enforce sanctions, and support cross-border investigations. The European MiCA framework, now in effect, requires strict licensing and monitoring for crypto companies, while US regulators are still refining digital asset rules through bodies like FinCEN and OFAC.

Asia offers a more collaborative model, with Singapore’s Monetary Authority working closely with private companies on compliance technology, while Japan has strengthened stock exchange supervision after previous hacks.

Additionally, many central banks in the region are testing government-issued digital currencies and tokenized reserves, borrowing ideas from public blockchains while maintaining tight state control.

The contrast is great. While North Korea uses crypto to bypass restrictions and finance weapons, countries like Singapore and the EU have adopted similar tools to modernize payments and surveillance. TRM argued that the difference has to do with visibility and enforcement. Public blockchains record every transaction, but only strong analytics and collaboration can turn that data into accountability.

As crypto markets mature, the report suggests this gap will widen. Authoritarian states will likely continue to seek solutions to digital assets, while democratic governments will push for rules that link innovation to surveillance.