Tether’s USDT Present In Shadow Economy Of Cambodia
The South China Morning Post (SCMP) has highlighted the influential role played by Tether’s USDT in Cambodia’s underground economy, particularly among the Chinese expat community.
Chinese nationals reportedly use the stablecoin to bypass capital controls, employing it as a medium to acquire tools that facilitate online scams. SCMP’s investigation identified Huione Pay, an approved financial platform in Cambodia, hosting Telegram groups that offer cryptocurrency exchange services, including USDT. These groups allegedly provide tools for international scams, accepting USDT as payment.
Despite Cambodia’s cryptocurrency ban since 2017, the report reveals the prevalence of illicit activities fueled by USDT. Jeremy Douglas from the United Nations Office on Drugs and Crime emphasized the overwhelming capacity of criminal groups, surpassing local enforcement agencies in Southeast Asia. Tether has recently intensified compliance efforts, collaborating with U.S. authorities to freeze funds associated with sanctioned addresses and partnering with agencies such as the U.S. Secret Service and the Federal Bureau of Investigation.
Clever Robot News Desk 22nd December 2023
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