A woman buys Bitcoin at Bitcoin Change in Tel Aviv, Israel, on Jan. 8, 2018. (Xinhua/Gil Cohen Magen)

As North Korea is reportedly considering launching a sovereign digital currency while China is diving into blockchain, there are opportunities for the two countries to cooperate in the sector, experts and industry insiders said.

A Chinese blockchain firm interviewed by the Global Times on Thursday showed interest in providing technology support and experience to contribute to the effort.

Shentu Qingchun, CEO of Shenzhen-based blockchain company BankLedger, said the company is willing to invest in blockchain-related industries in North Korea if the country opens up the market.

"It's a good opportunity. China has an edge in developing blockchain technology while North Korea could offer resources and a legion of application scenarios. Cooperation with North Korean companies in the sector could fast track the process and help overcome North Korea's weak internet infrastructure," Shentu told the Global Times.

He said his company can help apply blockchain in government administration as well as ticket sales and ticket checking.

"We could also help set up a cryptocurrency exchange in North Korea if the local regulators allowed us to do so," Shentu said. His firm has invested in a Malaysia-based digital currency trading center known as dfex.com.

North Korea has been reportedly studied the launch of its own sovereign digital currency. As Businesskorea reported in April 2019, North Korea held a first-ever international event on blockchain technology and cryptocurrencies from April 18 to 25.

A 36-year-old cryptocurrency specialist, Virgil Griffith, was arrested by the US Department of Justice on November 28, for allegedly helping North Korea use blockchain technology in violation of US sanctions and develop plans to transfer cryptocurrency between North Korea and South Korea, industry website decrypt.co reported.

Prosecutors alleged that he gave a presentation on how to use cryptocurrency during the conference, it said.

"The UN sanctions have not stipulated rules about blockchain and cryptocurrency so far," Zhang Huizhi, vice dean of the Northeast Asian Studies College at Jilin University, told the Global Times on Thursday.

Lü Chao, a research fellow at the Liaoning Academy of Social Sciences in Shenyang, agreed. 

"China and North Korea could cooperate on blockchain technology and cryptocurrency research to benefit each other. Especially for cryptocurrency, because it is an important step to enhance connectivity in finance," Lü said.

He advised Chinese companies to be prudent and make tentative plans if they are interested in blockchain cooperation with North Korea. 

Li Min, a senior partner with Shanghai Hansheng Law Offices, noted that there are many uncertainties about blockchain technology and cryptocurrencies, including supervision, market access and future development in different countries.