UN calls for action on crypto-related crimes in Southeast Asia

The United Nations Office on Drugs and Crime (UNODC) has raised alarm over the increasing use of cryptocurrency in facilitating organized crime across Southeast Asia.

In its latest report, the agency emphasized the urgent need for enhanced monitoring and improved training for law enforcement to combat the growing involvement of crypto in illegal activities.

According to the UNODC, the region's underground banking systems, including underregulated casinos, junkets, and illegal online gambling platforms, have increasingly adopted cryptocurrency to evade accountability.

Based on the report, high-risk virtual asset service providers (VASPs) have enabled criminal enterprises to operate unchecked, making it critical for authorities to act swiftly.

The UNODC pointed out that while not all scams in the region involve cryptocurrency, its ease of use for rapid cross-border transactions makes it a favored method among criminals.

Masood Karimipour, UNODC’s Regional Representative for Southeast Asia and the Pacific, stressed that technological advances have allowed criminal groups to engage in large-scale fraud, money laundering, and online scams.

“The region has emerged as a key testing ground for transnational criminal networks looking to diversify into new business lines,” Karimipour explained.

The report also highlighted that Tether (CRYPTO:USDT), particularly on the TRON (CRYPTO:TRX) blockchain, has become the preferred stablecoin for transnational criminal networks involved in cyber fraud and money laundering.

On-chain analysis reveals significant exposure to high-risk entities, including online gambling platforms and cybercrime operations.

Despite these concerns, studies indicate that cryptocurrency’s role in illicit finance is often overstated.

According to a recent report from Homeland Security Investigations, regulated crypto platforms provide crucial assistance to law enforcement, leveraging blockchain transparency to fight crime.

Data shows that only a small fraction of USDT and USDC (CRYPTO:USDC) transactions were flagged as potentially illicit, underscoring the importance of crypto’s transparency in combating financial crime.