Introduction:

Information Communication Technology (ICT) has significantly revolutionized the society influencing many parts of our daily lives providing accustomed benefits. “Blockchain” and “Cryptocurrencies” are one of the two such technologies that has been deemed as one of the greatest inventions of modern times. It has been steadily growing and reaching mainstream adoption status. Over the past few years, public and private sector has embarked on pilot projects around blockchain technology. Southeast Asian Member States are bracing this innovative solution and are constantly working towards mainstream implementation. The administrations continue to draft crypto-friendly laws and regulations to engender support this technology along with possible adoption in sectors like energy, alternative banking, fintech and more.

Blockchain and cryptocurrencies have started to play a major role in financial-industrial sector. For decades, banks and other related financial entities have primarily focused on retail banking and investments in a conventional way. While this fundamental approach is still important, the need for technology improvement and efficient process, needs to be taken into consideration. Fintech has become more relevant as it provides substantive ability to cater the needs for a digitized approach. In June 2020, over two billion USD has been deployed across a variety of DeFi applications (Bitkom, 2020) showcasing that the number of users is increasing significantly. Regulators have found that DeFi applications have not been able to fit neatly within existing regulatory frameworks. Thus, this raises an issue that needs to be addressed jointly by both public and private sectors.

The dynamic crypto sector is moving fast highlighting the need for continued monitoring and engagement. The modern market for cryptocurrencies continues to expand. Besides Bitcoin, there are now over 5,000 altcoins. While criminal justice authorities are getting better at identifying criminal behavior, transnational organized groups (TOC) are quick to come up with new evasion techniques to defeat the efforts. A comprehensive regulatory framework is thus required to avoid the misuse of cryptocurrencies for illicit activities including but not limited to terrorist activities, money laundering, distribution of online child sexual exploitation materials, etc.

The COVID-19 pandemic has posed an unpresented global challenge to all of society, where specialist counter-cybercrime law enforcement personnel have been diverted from investigating cybercrime offences to supporting government measures, such as quarantine enforcement, against the COVID19 outbreak. Specialist officials have also become ill. Capacity has been reduced further, reducing the capability of States to counter new and increasing cybercrime threats. Cybercriminals have evolved their criminality to exploit the social, legal and psychological nuances associated with COVID19 adjusting the modus operandi to fit the pandemic narrative.

Objectives:

Based on the above premises, the United Nations Office on Drugs and Crime (UNODC), has developed a project funded by the kind contribution of the Government of Japan, that aims to strengthen the capacity of member states to tackle Cryptocurrencies related crime. The project also aims to foster cross regional cooperation highlighting international best practices both on investigative and on regulatory approaches.

UNODC is organizing the 3^rd Southeast Asia Cryptocurrencies Working Group Meeting in support of the ongoing collaborative effort among the Southeast Asian countries promoting long term and sustainable international cooperation on cybercrime and Cryptocurrencies related crime. The meeting will act as a forum for regional discussions. The identified stakeholders, public and private sectors, will gather to exchange of ideas and solutions for an effective regulation and legislation of Cryptocurrencies and digital financial platforms. A series of case presentations will be delivered by criminal justice authorities highlighting the regulatory framework, process of investigation, challenges faced and way forward for a tactical approach to combat such crime. The event will also raise awareness and understanding of the evolving threats in the use of digital assets, and international cooperation and good practices that could enhance the capacity of law enforcement community. Where applicable, the activities will advocate for the necessary reform of the AML/CFT frameworks and cryptocurrencies regulations

Participants:

The meeting is targeted at Member states and representatives of the UN system, civil society, law enforcement agencies, parliamentarians, donors that work in multi-sectoral ways to support United Nations and the 2030 Agenda for Sustainable Development.

Due to COVID-19 pandemic and travel restrictions in place, the working group meeting will be organized in a hybrid manner that participants will attend the meeting onsite in Bangkok, Thailand, and the rest of participants will attend online.

UNODC Global Programme on Cybercrime:

The complex nature of cybercrime, as one that takes place in the borderless realm of cyberspace, is compounded by the increasing involvement of organized crime groups. Perpetrators of cybercrime, and their victims, are often located in different regions, and its effects ripple through societies around the world. This highlights the need to mount an urgent, dynamic and international response.

Objectives & Geographic Scope:

The Global Programme is designed to respond flexibly to identified needs in developing countries by supporting Member States to prevent and combat cybercrime in a holistic manner. The main geographic nexus for the Cybercrime Programme in 2017 are Central America, Eastern Africa, MENA and South East Asia & the Pacific with key aims of:

• Increased efficiency and effectiveness in the investigation, prosecution and adjudication of cybercrime, especially online child sexual exploitation and abuse, within a strong human-rights framework;

• Efficient and effective long-term whole-of-government response to cybercrime, including national coordination, data collection and effective legal frameworks, leading to a sustainable response and greater deterrence;

• Strengthened national and international communication between government, law enforcement and the private sector with increased public knowledge of cybercrime risks.

Cybercrime and SEA:

Since 2013, UNODC has been providing technical assistance on cybercrime matters to Member States worldwide, consistent with the wider UN system efforts on cybercrime and in line with the overall objectives expressed in the UN Global Programme on Cybercrime. As part of this continued effort, several training modules, awareness activities, study tours and specialized topics working group meetings have been organized in conjunction with other relevant stakeholders.