UN agency recommends criminalizing unlicensed virtual asset service providers in Southeast Asia to combat online fraud

The United Nations Office on Drugs and Crime has called on Southeast Asian countries to criminalize the operation of unlicensed money service businesses or virtual asset service providers (VASPs). The agency said in a report released on Monday that some VASPs, including those with ties to known criminals, are facilitating transactions for fraud organizations and high-risk gambling sites. The report said an unnamed entity conducted transactions with criminal organizations for "at least hundreds of millions of dollars." These include groups associated with or directly involved in large-scale drug trafficking, human trafficking, cybercrime and child sexual abuse material, as well as entities sanctioned by the U.S. Office of Foreign Assets Control (OFAC) and wallets associated with the North Korean Lazarus Group. "More than ever, governments need to recognize the severity, scale and scope of this truly global threat and prioritize solutions to address the region's rapidly growing criminal ecosystem," Masood Karimipur, UNODC regional representative, said in a statement. (Coindesk)