The United Nations is asking countries in Southeast Asia to take action against unlicensed crypto exchanges. These exchanges, according to the UN Office on Drugs and Crime (UNODC), often work with criminals. They help with illegal activities like fraud, drug trafficking, and cybercrime.
The UN report says that one unnamed exchange made deals worth hundreds of millions of dollars with criminal groups. These groups are involved in serious crimes, including human trafficking and hacking. One example is North Korea’s Lazarus Group, known for cyberattacks. The UNODC’s regional representative Masood Karimipour says governments need to see this as a big problem and act quickly to stop it.
“It is more critical than ever for governments to recognize the severity, scale, and reach of this truly global threat, and to prioritize solutions that address the rapidly evolving criminal ecosystem in the region,” Masood Karimipour said.
The UNODC suggests making it a crime to run a money or virtual asset service without a license. They also recommend better surveillance and training for law enforcement. This would help police recognize scams that involve casinos, cyber fraud, and cryptocurrencies. Scams using digital currencies are becoming more common in Southeast Asia because they allow fast, cross-border transactions.
Online scams have also been rising in the region. In places like Cambodia and Myanmar, many people are tricked into working in scam operations. A common scam, known as “pig butchering,” tricks victims into fake investments through online relationships. Scammers are using new technology like artificial intelligence to make their scams more convincing.
Crypto phishing attacks are another big issue. Last month, over 10,000 people lost nearly $47 million to such frauds, according to Scam Sniffer, a platform that tracks online fraud.
The UN is urging governments to tackle this problem by strengthening their laws and improving their ability to catch these criminals.
Disclaimer
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