Tether’s USDT Impacts Cambodia’s Shadow Economy
A recent report by the South China Morning Post (SCMP) highlights the role played by Tether’s USDT in the underground economy of Cambodia. SCMP reveals that the stablecoin is widely available in exchanges that target the Chinese expat community in Cambodia.
Telegram Groups and Scam Tools
SCMP’s investigation found that Huione Pay, a Cambodia-approved financial platform, hosts Telegram groups offering exchange services for cryptocurrency assets, including USDT. Some of these groups also provide tools to facilitate scam operations such as international SIM cards and data on Chinese citizens living abroad.
Illegal Services for USDT
The report uncovered operators advertising illegal services that accept USDT as payment, including bank cards for receiving money from scam victims, criminal background checks, company records, and bank statements. It is important to note that Cambodia has banned cryptocurrency since 2017.
Local Authorities Overwhelmed
Jeremy Douglas, the United Nations Office on Drugs and Crime’s regional representative, emphasized that using cryptocurrency has put a strain on local authorities who are struggling to keep up with the technology. Criminal groups engaging in online gaming, scams, money laundering, and operating underground banks have surpassed the capabilities of enforcement agencies in Southeast Asia.
Tether’s Compliance Efforts
Tether has recently taken steps to improve compliance by freezing funds in addresses associated with the Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons list (SDN List). The company has also collaborated with US government agencies, including the Secret Service and the Federal Bureau of Investigation (FBI).
Hot Take: Tether’s Role in Cambodia’s Underground Economy
The SCMP report sheds light on the influence of Tether’s USDT in Cambodia’s underground economy, serving as a tool for Chinese nationals to bypass capital controls and engage in online scams. While Tether has taken measures to enhance compliance, the prevalence of USDT in facilitating illicit activities highlights the challenges faced by local authorities in combating crypto-related crimes.
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