Southeast Asia faces $37 billion in crypto-related crimes
Organised crime groups in Southeast Asia are increasingly using cryptocurrency to engage in more sophisticated and harder-to-detect activities such as money laundering, fraud, and underground banking, according to a report from the United Nations Office on Drugs and Crime (UNODC).
The report estimates that scams in East and Southeast Asia caused financial losses ranging between $18 billion and $37 billion in 2023, with a large portion attributed to organised crime.
Emerging technologies like cryptocurrency and artificial intelligence (AI) are enabling criminals to operate with greater ease.
According to Slava Demchuk, a consultant for the UNODC and CEO of AMLBot, while blockchain analytics can trace the origins of crypto assets, these assets are frequently linked to illicit activities.
“Such screening steps might indicate that the crypto address is associated with some risks, such as sanctions, illegal services, or dark markets,” he stated.
Cybercriminals are also taking advantage of underregulated virtual asset service providers and online gambling platforms to launder money across borders with minimal oversight.
These platforms allow organised crime to funnel illicit funds into the global financial system while bypassing conventional regulations.
Masood Karimipour, UNODC’s Regional Representative for Southeast Asia and the Pacific, emphasised the challenge, stating, “Organized crime groups are exploiting vulnerabilities, and the evolving situation is outpacing governments' capacity to contain it.”
The report also highlights the role of AI in generating deepfakes for fraud, adding complexity to the fight against cybercrime.
The lack of Know Your Customer (KYC) processes in some crypto services makes them attractive to criminals.
As Demchuk explained, "This opens the door for those who want to benefit from providing unregulated crypto services."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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