UN says casinos, crypto drive underground banking, money laundering in Asia

According to the United Nations Office on Drugs and Crime (UNODC), cryptocurrency, casinos, and junkets are essential components of East and Southeast Asia’s underground banking and money laundering networks.

The study focuses on the connections between illegal online casinos, cryptocurrency exchanges, and electronic junkets (e-junkets), all of which support the growth of transnational organized crime in the region.

By early 2022, it projects that there will be more than 340 land-based casinos in Southeast Asia that are both authorized and unregistered. Many of them will have moved online to provide proxy betting and live dealer streaming.

By 2030, the formal online gambling market is predicted to reach $205 billion, with the Asia Pacific area driving most of the growth. The underground economy has changed as a result of the growth of unregulated online gaming sites and cryptocurrency exchanges, which have made anonymous transactions faster and given organized crime new opportunities.

According to the inquiry, illegal internet gaming has spread to cyber fraud and cryptocurrency laundering. Some signs that organized crime is involved in several industries, including some that are governed by armed groups in Myanmar.

To fight organized crime in Southeast Asia, the UNODC emphasizes the urgent need for stronger law enforcement measures, with a focus on online scams, fraud operations, forced illegal trafficking, money laundering, and allegations of government collaboration.

To combat the growing threat posed by the region’s developing online casino sector, the report suggests more international collaboration, stringent regulatory measures, and the establishment of specialized units at the national and regional levels.

Original story by: Asia Gaming Brief