UNODC's Strategy to Penalise Unlicensed Crypto Firms in Southeast Asia

Wednesday, 9 October 2024, 04:42

UNODC is set to penalise unlicensed crypto firms in Southeast Asia to curb financial fraud cases. The organization reveals alarming statistics about financial losses caused by cyber fraud in the region. Unregulated Virtual Asset Service Providers (VASPs) are being targeted to enhance accountability and regulations.
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UNODC's Strategy to Penalise Unlicensed Crypto Firms in Southeast Asia

UNODC's Urgent Call for Action

A recent report by the UNODC highlights the rapid rise of crypto-related cyber fraud in Southeast Asia. The region is estimated to suffer financial losses of around $37 billion from scams in 2023 alone.

Impact of Unlicensed Crypto Firms

The UNODC recommends penalising unlicensed crypto firms, specifically targeting virtual asset service providers (VASPs) that facilitate illegal transactions. They are urged to be "identified and prevented from operating" to mitigate the risks of money laundering.

Emerging Threats from AI and Cyber Crime

  • AI-driven cybercrimes have seen a staggering increase of 600 percent in just the first half of 2024.
  • Criminal networks are leveraging advanced technologies to execute sophisticated fraud.

Future Implications for Southeast Asia

The UNODC stresses the need for governments to adopt practices that reduce cyber fraud, as the region becomes a key testing ground for transnational criminal networks. With Southeast Asia's crypto market projected to grow by 4.13% by 2025, vigilance is more critical than ever. According to UNODC's regional representative, the convergence of organized crime and cyber fraud poses a significant threat.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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