Southeast Asia Cracks Down on Crypto Exchanges Amid Scam Surge
The Southeast Asian region has seen a surge in crypto-related scams and money laundering, prompting governments to take action. In 2025, the Philippines charged former mayor Alice Guo with 62 counts of money laundering after uncovering her role in one of the largest crypto scam compounds in the country.
According to the UN Office on Drugs and Crime, Southeast Asian scam centres steal almost USD 40 billion annually, while also tragically trafficking hundreds of thousands of victims to operate them. Crypto exchanges are a key gateway for these illicit activities, as they enable users to send funds to scammers who can move crypto on blockchains without identity verification.
The Financial Action Task Force (FATF) has issued recommendations for countries to regulate Virtual Asset Services Providers (VASPs), which include crypto exchanges. The risk-based approach allows VASPs to prioritize their AML and CFT measures in response to their independent assessment of risks.