How nations are reshaping global finance with crypto

The TRM report shows that crypto is now integrated into the state’s economic and security planning, and is not treated as a marginal asset.

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

However, there is a gap between how authoritarian and democratic governments use digital assets, which the report says makes crypto a quiet but powerful force in global finance and geopolitics.

Crypto goes from a market experiment to a state tool

According to TRM, blockchain’s borderless design allows countries to move value outside of traditional systems built around the US dollar, SWIFT and corresponding banking services, with authoritarian regimes relying heavily on this functionality.

North Korea is the most aggressive example. The company has linked the country’s cyber units to multibillion-dollar exchange, DeFi, and bridge hacks, including the high-profile Bybit breach in February 2025.

Investigators traced how stolen funds were routed through mixers, transferred between blockchains, converted into stablecoins and ultimately cashed out through over-the-counter brokers in Asia. These revenues, TRM said, are reinvested in Pyongyang’s missile and nuclear programs.

Russia, for its part, has taken a different path since facing draconian sanctions following its 2022 invasion of Ukraine. Although digital assets have not replaced traditional finance, TRM data shows that they now play a supporting role in cross-border settlements with partners such as Iran, fundraising for pro-Russian groups, and large-scale mining operations that turn cheap energy into foreign currencies.

Meanwhile, Iran legalized Bitcoin mining in 2019 and, according to the report, used BTC mined in the country to pay for imports while circumventing payment restrictions.

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A shared path for the future of crypto

Not all state uses of cryptography are contradictory. The study presents democratic governments as focusing on oversight, transparency and market stability.

In the United States and Europe, for example, agencies now rely on blockchain analysis to trace ransomware payments, enforce sanctions, and support cross-border investigations. Europe’s MiCA framework, now in effect, requires strict licensing and oversight for crypto companies, while U.S. regulators continue to refine rules on digital assets through bodies such as FinCEN and OFAC.

Asia offers a more collaborative model, with the Monetary Authority of Singapore working closely with private companies on compliance technologies, while Japan has strengthened foreign exchange supervision following previous hacks.

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

The contrast is striking. While North Korea uses crypto to circumvent restrictions and finance weapons, countries like Singapore and those in the EU have applied similar tools to modernize payments and supervision. TRM argued that the difference comes down to visibility and enforcement. Public blockchains record every transaction, but only strong analytics and cooperation can turn this data into accountability.

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