The United Nations Office on Drugs and Crime (UNODC) has expressed deep concern about the role of cryptocurrencies in facilitating illicit activities across Southeast Asia.

UN's Crypto Alert

In its latest report, UNODC claims that the rise of high-risk virtual asset service providers has created a new avenue for criminal enterprises to operate without accountability. It calls for enhanced monitoring of organized crime within casinos, junkets, and cyber fraud operations, alongside improved training for authorities in identifying sophisticated money laundering methods enabled by crypto.

Tether in Spotlight

The UN agency also reported that Tether (USDT), particularly on the TRON blockchain, has become the preferred stablecoin for transnational criminal networks in East and Southeast Asia. These networks favor Tether for its efficiency in moving stolen funds. On-chain analysis reveals that USDT has high counterparty exposure to high-risk entities.

Crypto Criticism Misplaced

Despite crypto often facing criticism as a tool for illicit activities, studies indicate that cash remains the preferred method for criminals. A report from Homeland Security Investigations highlighted that regulated crypto platforms provide essential support to law enforcement, leveraging blockchain technology's transparency.

While cryptocurrencies are actively used in illegal activities, studies show their role may be exaggerated compared to traditional methods like cash. This calls for a more balanced approach to regulation in the crypto space.