UN Agency Recommends Criminalization of Unlicensed VASPs in Southeast Asia to Counter Cyber Fraud
The United Nations Office on Drugs and Crime urged Southeast Asian nations to criminalize operating unlicensed money service businesses or virtual asset service providers (VASPs). The report highlights that some VASPs are linked to criminal activities, facilitating transactions for fraud and high-risk gambling. An unidentified entity was involved in transactions worth “at least hundreds of millions of dollars” with groups engaged in drug trafficking, human trafficking, cybercrime, and child sexual abuse. The UNODC emphasized the need for governments to address the evolving criminal ecosystem and recommended enhanced monitoring of organized crime in casinos and online fraud operations. Scammers favor cryptocurrency for its rapid cross-border transaction capabilities and the lack of understanding surrounding it. Online fraud has surged in the region, with an estimated 220,000 individuals working in scam centers in Cambodia and Myanmar. Scams have diversified to include romance scams, impersonation scams, and the use of AI and deep fakes.
