YEREVAN (CoinChapter.com) — The United Nations Office on Drugs and Crime (UNODC) raised concerns about cryptocurrency’s role in Southeast Asia’s organized crime. In a new report, the agency called for stronger regulations. It urged immediate action to stop digital assets from being used in illegal activities. Criminal groups, according to the report, are increasingly using cryptocurrencies like Tether for cross-border transactions.
Crypto-Enabled Crime in Southeast Asia
The UNODC report shows how Southeast Asia’s underground sectors are turning to cryptocurrency. Illegal online gambling, junkets, and underregulated casinos are using crypto for organized crime. These operations find it easier to move money and launder funds with digital currencies. They take advantage of the region’s weak regulatory framework to carry out these activities.
In addition, the report urges immediate action and better monitoring of these criminal activities. It emphasizes that law enforcement needs more training. This would help detect and tackle money laundering and other crimes involving digital currencies. Specifically, crypto’s speed in enabling cross-border payments makes it appealing to scammers in the region.
UNODC Report on Cyber-Enabled Crime in Southeast Asia. Source: UNODC Tether (USDT) Dominates Criminal Networks
The UNODC reported that Tether (USDT), especially on the TRON blockchain, serves as the stablecoin of choice for criminal networks in Southeast Asia. Criminal groups use Tether to move illicit funds efficiently, particularly for cyber fraud and money laundering. The report revealed that large sums tied to drug and human trafficking flow through Tether.
While people use stablecoins like Tether legitimately, the report highlighted USDT’s greater exposure to high-risk entities. These include online gambling platforms, risky exchanges, and cybercrime schemes. Additionally, authorities linked some Tether transactions to wallets associated with sanctioned entities, including North Korea’s Lazarus Group, known for hacking activities.
Crypto’s Role in Crime Overstated
Interestingly, despite concerns over the use of cryptocurrency in illegal activities, the UNODC noted that cash is still the preferred method for criminal enterprises. A recent report by Homeland Security Investigations (HSI) pointed out that regulated crypto platforms help law enforcement by providing transparency through blockchain technology.
Cryptocurrency’s Role in Illicit Finance vs. Traditional Systems. Source: Treasury’s 2024 National Money Laundering Risk Assessment
Moreover, according to data from Merkle Science, only 0.61% of Tether (USDT) transactions between July 2021 and June 2024 were flagged as potentially illicit. The percentage for USDC transactions was even lower, at just 0.22%. Above all, Chainalysis reported that illicit activities accounted for only 0.34% of all on-chain transactions in 2023, showing that the role of crypto in crime is smaller than often assumed.
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