• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Thursday 29 May 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
  • 中文
No Result
View All Result
IAG
No Result
View All Result

Report: Governments, regulators must embrace cryptocurrency industry to better police criminal threats to global casino sector

Ben Blaschke by Ben Blaschke
Wed 4 Sep 2024 at 06:36
Cryptocurrency warnings renewed after Macau locals stripped of HK$20 million
21
SHARES
516
VIEWS
Print Friendly, PDF & Email

A new research report by defence and security think tank The Royal United Services Institute (RUSI) has called on governments and regulators to work more closely with cryptocurrency exchanges and service providers in order to better police what it describes as a key threat to the global casino industry.

It also points to the use of criminal proceeds generated by North Korea by exploiting the casino and gaming sector – particularly with the use of cryptocurrency – as a major concern.

The newly published report, titled North Korean Activity in the Casino and Gaming Sector: How Do Jurisdictions Respond? says criminal groups and state actors continue to abuse the limited jurisdictional oversight in certain aspects of the casino and gaming sector but notes that the “threat landscape has changed” with the emergence of the cryptocurrency industry.

“Criminal actors exploit under-regulated aspects of the casino and gaming sector to launder and move illicit assets across jurisdictions. This threat is further compounded by the reported involvement of cryptocurrency as a means to move and obfuscate criminal assets,” the report states.

“As a result of this shift in design, a new global illicit marketplace has emerged and, as such, jurisdictions need to examine the full scope of threats in the casino sector. North Korean actors are already known to exploit the cryptocurrency industry and designated non-financial businesses and professions, including casinos, to generate and launder revenue for North Korea’s WMD (weapons of mass destruction) program.

“Within this risk assessment scope, authorities need to understand whether sanctioned entities can exploit these emerging avenues to obscure the source of criminal proceeds and/or offload illicit cryptocurrency.”

According to the report, casino junkets remain a potential point of vulnerability for casino operators globally with junket operators and agents increasingly utilizing cryptocurrency as a means of accepting payment and moving funds across borders. In some instances, the platforms by which such transactions are processed are developed by or linked to North Korea.

Identifying specific areas of weakness in both the land-based and online gaming sectors, the report points to a lack of sufficient monitoring of the junket industry – even in jurisdictions where some or all junket financial activity is banned – the lack of effective legislation around the use of cryptocurrencies in land-based and online casinos, and a lack of “best practice and guidance” around proliferation financing in the sector.

However, among the main risk mitigation strategies identified is an acceptance by regulators of cryptocurrency as an opportunity to better track customer transactions.

“The involvement of cryptocurrency in casino-related investigations may not be apparent unless investigators use blockchain analytic tools to track incoming and outgoing transactions for addresses,” it states. “Cash is still the main form of payment in casinos. However, cryptocurrency is sometimes promoted as a payment or pay-out option on social media.

“If cryptocurrency is used in casinos or junkets, there is an opportunity for insight into junket operations. Cash is readily exchangeable and untraceable, but the more common forms of cryptocurrency are pseudonymous. This characteristic means that if a casino uses cryptocurrency as a payment option, investigators can trace this activity.”

Specifically, the report calls for additional license conditions to be applied in any jurisdiction where cryptocurrency can be used for gaming purposes, and for governments and regulators to determine what controls should be placed on cryptocurrency use. These, it explains, may include the types of cryptocurrency allowed and transaction thresholds, while also calling for the use of blockchain analytic tools to identify red flags.

“While threats such as those relating to the exploitation of junkets are already reflected in 2009 guidance from the FATF (Financial Action Task Force), the threat landscape has significantly changed with the emergence of the cryptocurrency industry,” it says.

“With an evolving financial ecosystem, public sectors need to take action to investigate and restrict the exploitation of new avenues relating to the casino and gaming sector.

“Threats are identified in the context of open avenues already exploited by illicit actors, and the possibility of North Korea abusing these channels across other jurisdictions.

“To be successful in this pursuit, public sectors need to work in partnership with crypto exchanges and other service providers, the casino and gaming sector and blockchain analytics companies. By working at an international level, the risk of North Korea abusing the casino and gaming sector can be greatly reduced, and authorities can thereby further restrict that regime’s capacity to obfuscate criminal proceeds for use in its WMD programme.”

RelatedPosts

Casino Filipino venues to receive first delivery of almost 2,000 new slot machines by mid-September

PAGCOR board, including Chairman Tengco, tender courtesy resignations following Presidential call

Thu 29 May 2025 at 14:15
More details emerge on Thailand Entertainment Complex Roundtable including real-time transcription and translation, simultaneous interpretation, venue information and Thai media coverage

More details emerge on Thailand Entertainment Complex Roundtable including real-time transcription and translation, simultaneous interpretation, venue information and Thai media coverage

Thu 29 May 2025 at 06:46
Macau GGR rises 43.7% year-on-year to MOP$86.86 billion in 2021

Moody’s maintains investment-grade rating for Macau as fiscal reserves climb to US$77 billion

Thu 29 May 2025 at 05:23
Thailand: Keeping the dream alive

Maybank: Thailand tourism hits rock bottom as Chinese visitors stay away following earthquake, actor abduction

Wed 28 May 2025 at 12:14
Load More
Tags: casinoscryptocurrencyEuropeGamingJunketsThe Royal United Services Institute
Share8Share1
Ben Blaschke

Ben Blaschke

A former sports journalist in Sydney, Australia, Ben has been Managing Editor of Inside Asian Gaming since early 2016. He played a leading role in developing and launching IAG Breakfast Briefing in April 2017 and oversees as well as being a key contributor to all of IAG’s editorial pursuits.

Current Issue

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian...

On the brink

On the brink

by Pierce Chan
Thu 29 May 2025 at 13:27

The transition period for Macau’s 11 satellite casinos is set to expire at the end of this year, after which...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry...

Face to face

Face to face

by Ben Blaschke
Wed 28 May 2025 at 18:08

Konami caught the eye at the recent G2E Asia show in Macau with its SYNK Vision Tables, which utilize facial...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

Macau’s hotel occupancy rate reaches 89% in July

Macau’s hotel occupancy rate climbed to 87.8% in April

by Pierce Chan
Thu 29 May 2025 at 17:27

Macau’s average hotel occupancy rate rose by 4.7 percentage points year-on-year to 87.8% in April, with the number of guests increasing by 3.4% to 1.2 million. According to data from the Statistics and Census Service (DSEC), there were 147 hotel...

Casino Filipino venues to receive first delivery of almost 2,000 new slot machines by mid-September

PAGCOR board, including Chairman Tengco, tender courtesy resignations following Presidential call

by Ben Blaschke
Thu 29 May 2025 at 14:15

The Board of Directors of Philippine gaming regulator PAGCOR, including Chairman and CEO Alejandro Tengco, have tendered courtesy resignations this week in response to a directive from Philippines President Ferdinand Marcos Jr. Tengco, along with PAGCOR President and COO Wilma...

More details emerge on Thailand Entertainment Complex Roundtable including real-time transcription and translation, simultaneous interpretation, venue information and Thai media coverage

More details emerge on Thailand Entertainment Complex Roundtable including real-time transcription and translation, simultaneous interpretation, venue information and Thai media coverage

by Ben Blaschke
Thu 29 May 2025 at 06:46

The Thailand Entertainment Complex Roundtable (TECR) – a groundbreaking event bringing together international integrated resort operators Galaxy, Melco and Wynn as well as major figures who have opposed the introduction of entertainment complexes (ECs) to Thailand – will truly be...

Ainsworth flags 1H25 revenue growth on Australian market strength but Novomatic takeover facing opposition by family of founder

Ainsworth chair says higher R&D investment necessary to boost global market competitiveness

by Ben Blaschke
Thu 29 May 2025 at 05:49

The chairman of Australian slot machine supplier Ainsworth Game Technology says the company must continue to increase its investment into research and development (R&D) in order to maintain global competitiveness and gain market share. Danny Gladstone cited R&D as Ainsworth’s...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE
  • 中文

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • 中文
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • 中文
  • English