Online Casino and Cryptocurrency Fuel Transnational Crime

Cryptocurrency, Online Casino and Organized Crime in Southeast Asia

A recent report from the United Nations Office on Drugs and Crime (UNODC) has highlighted a troubling trend in East and Southeast Asia, showing how online casinos, Cryptocurrency, and illegal money activities are causing more crime in the region. The report, titled ‘Casinos, Money Laundering, Underground Banking, and Transnational Organized Crime in East and Southeast Asia: A Hidden, Accelerating Threat,’ explains how these factors are connected and helping organized crime grow across countries.

The Shift from Land-Based Casinos to Online Casinos

The UNODC report reveals that in early 2022, there were more than 340 casinos in Southeast Asia, both legal and illegal. However, a big change is happening, with many people moving from land-based casinos to online platforms. These online casinos now offer live dealer streaming and proxy betting, where players bet through a third party. The online betting market is expected to grow past $205 billion by 2030, with the Asia Pacific region leading the way. One of the most well-known online casinos for betting is Ignition Casino, which also offers a no deposit bonus.

How Crypto Plays a Part in the Illegal Economy

The rise of online casinos and crypto has made it easier for criminals to move money secretly. According to Coin Gabbar, the growth of unregulated online casinos and crypto transactions has made it easier for illegal activities to happen. These digital solutions let criminals make fast, anonymous transactions, which has increased criminal activity, especially in Southeast Asia's Mekong region.

Money Laundering Issues

Jeremy Douglas, UNODC’s Regional Representative for Southeast Asia and the Pacific, says that online casinos are becoming key tools for money laundering. They allow large crime groups to move and clean both regular money and cryptocurrencies. The report mentions that Southeast Asia’s economic growth has created more chances for crime. This is especially true in the Mekong countries, where illegal money activities have a long history. The crypto market needs more security to stop these illegal activities.

The Growth of Cyberfraud

The report also talks about how online casinos are getting involved in cyberfraud and crypto money laundering. There is evidence showing that crime groups in Myanmar, controlled by armed groups, are using this method. The quick use of technology, such as fake websites, cryptocurrencies, and third-party betting software, helps set up online casinos in East Asia, even if local laws don't allow it.

Challenges with Cross-Border Betting and Crackdowns

This increase in illegal online casinos has led to more cross-border betting. This makes it harder for authorities to stop these activities. The report explains how one crime group can run websites in one country, have a license in another, and have customers in a third country. Chinese authorities have been fighting this issue, arresting over 75,000 people involved in illegal betting in 2020, with more crackdowns in 2022 and 2023.

Need for International Cooperation

The rise of online casinos has made it difficult for authorities to stop these activities, and the report calls for stronger cooperation between countries. The global nature of this problem requires quick and coordinated action to deal with the growing threat of online casinos in the region.

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