In a world with fast growing technological advancement Tether, which is one of the world’s most traded cryptocurrencies, has become a key tool used by criminals. According to a report by the United Nations (UN) on Monday, criminals now use Tether to carry out heinous crimes such as money laundering and cyber scams.
The report surfaced amid efforts by the United Nations to strengthen regulatory scrutiny over how digital assets are being used to aid illicit activity. More so, the reports revealed how the stablecoin has facilitated various money laundering and fraud schemes across East and Southeast Asia.
Insight into the Report of the UN
In the report, the UN indicated how the stability, easy access, anonymity and low transaction fees has made Tether a “preferred choice” for online scammers and money launderers.
Furthermore, the report reflected how Tether is playing a leading role in the “surging volume” of cyber crimes, and money laundering. Additionally, the UN also discussed some criminal schemes fraudsters use Tether for in the East and Southeast.
Some of these schemes include “sextortion,” usually form of blackmail threatening to post sexual content or information about a person. The International organization went on to describe how Tether is “fueling the intensification” of the region’s “fast-growing illicit digital economy.”
Consequently, the report by the UN will further attract more attention on the regions regarding the use of crypto for illicit activities. However, Tether is yet to respond to the claims of Forbes. Recall that Tether runs a blockchain platform offering stablecoins pegged to real-world currencies with the backing of its own financial reserves.
Growing Attention on East and Southeast Asia Regarding the Use of Crypto for Unlawful Transactions
Meanwhile, East and Southeast Asia is gaining unwanted attention for illicit banking activities. Recently, the United Nations Office on Drugs and Crime (UNODC) issued a warning in a separate report. The report discussed the rampant use of crypto for illegal online casinos, organized crime, and illicit banking in the region.
One of the top officials of UNODC, Jeremy Douglas during a discussion with Financial Times explained how the use of crypto is gaining more ground among gamblers and fraudsters. Jeremy Douglas said “Organized crime has effectively created a one-way banking system using advanced technologies,”
Likewise, Douglas warned that “the proliferation of loosely or entirely unregulated online casinos together with crypto has really charged the region’s criminal ecosystem.” Crypto regulations are “way behind or practically non-existent,” he warned.
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