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The United Nations Office on Drugs and Crime (UNODC) has urged Southeast Asian nations to criminalize the operation of virtual asset service providers (VASPs) without a proper license.
The recommendation comes amid concerns that some VASPs, including those linked to criminal networks, are facilitating transactions for illicit activities like fraud and high-risk gambling operations, according to a recent report released by the agency.
These organizations include groups involved in large-scale drug and human trafficking, cybercrime, and child sexual exploitation, as well as entities under sanctions by the U.S. Office of Foreign Assets Control (OFAC).
The report highlighted that one unnamed entity had conducted transactions worth “at least hundreds of millions of dollars” with criminal organizations.
Unlicensed Exchanges Are Tied to Drug Trafficking, Cybercrime
Additionally, the report mentions wallets tied to North Korea’s Lazarus Group, a notorious hacking syndicate.
“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, UNODC’s regional representative, said.