Southeast Asia Faces New Crypto Crime Wave, UNODC Calls for Regional Cooperation
- Southeast Asia urged to criminalize unlicensed crypto asset service providers (VASPs).
- Transnational organized crime integrates advanced technology and cryptocurrency for illegal activities.
- UNODC emphasizes regional collaboration and stricter regulations on casinos and crypto-based money laundering.
The United Nations Office on Drugs and Crime (UNODC) has released a report urging Southeast Asian nations to take stronger crypto measures against unlicensed virtual asset service providers (VASPs). The call comes amid an unprecedented campaign against organized crime, especially in fields with a high potential for money-laundering, like online gambling, casinos, and virtual currencies.
The report points out that criminal activities are increasingly becoming sophisticated in the region, featuring complex networks that take advantage of emerging technologies like digital currency and deepfake technology.
Organized Crimes Growing Reliance on Crypto
Criminal syndicates across Southeast Asia rapidly adapted the use of new business models, including technologies such as cryptocurrency. According to a report by UNODC, these groups have gone beyond human trafficking and money laundering to apping into cybercrime, using malware, artificial intelligence, and underground crypto markets.
All these trends have made it tough for governments and law enforcement agencies to keep pace because crime syndicates have systematically adjusted to becoming adept at moving illicit funds across borders using digital assets.
It has also allowed organized criminal networks to open new types of underground markets, further complicating efforts to track and regulate their activities. Southeast Asian governments, especially in the Mekong region, should do more to enhance the capacity for monitoring these crimes and impose a more stringent regulatory environment on virtual asset service providers.
Strengthening Regional Cooperation
The report calls for such challenges to be addressed collaboratively by the countries of Southeast Asia. A recommendation would be the creation of a regional intelligence-sharing platform for fraud, cyber-enabled, and organized crime associated with crypto assets.
Also, UNODC called for the strengthening of the casino, VASP, and other high-risk regulatory regimes, as well as access to suspicious transaction reports for follow-up investigations by governments.
However, the report underlines that fighting transnational crime needs an approach by region and a special focus on crypto, which has become increasingly popular in illegal activities. Enhanced strategies of law enforcement, stronger regulatory frameworks, and international cooperation will be required to address this emerging threat.
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Text source: TronWeekly
