Explore how Tether’s USDT is entwined with Cambodia’s shadow economy, facilitating activities from evading capital controls to aiding online scams. The report delves into the intricate web of cryptocurrency use in the Chinese-linked underground economy.
A recent South China Morning Post (SCMP) report sheds light on Tether’s USDT and its significant role in Cambodia’s underground economy. SCMP reveals that Huione Pay, an approved Cambodian financial platform, hosts Telegram groups offering cryptocurrency exchange services, prominently featuring USDT. These groups allegedly provide tools for scams, including international SIM cards and data on Chinese citizens abroad, accepting USDT as payment. Despite Cambodia’s 2017 cryptocurrency ban, the digital currency thrives in the Chinese expat community.
The United Nations Office on Drugs and Crime’s Jeremy Douglas emphasizes the challenges faced by local authorities, citing the advanced capabilities of criminal groups engaged in online gaming, scams, money laundering, and underground banking. Meanwhile, Tether has heightened compliance efforts, freezing funds linked to sanctioned addresses. The company collaborates with U.S. agencies, including the Secret Service and the FBI, showcasing a commitment to regulatory cooperation.