Tether Takes Center Stage: The Cryptocurrency of Choice for Cambodian Cland Transactions

In specific areas of Phnom Penh that are often visited by Chinese expats, the illuminated neon signs shown at currency exchanges that operate round the clock advertise the option to swap yuan for tether. Tether is the preferred cryptocurrency for facilitating the movement of funds in and out of China, as well as for gambling and converting the profits obtained from cyber scams in Southeast Asia.

Tether (also known as USDT), like other cryptocurrencies, is prohibited for trading in Cambodia. Tether is classified as a stablecoin because its value is linked to the US dollar.

However, security experts assert that it has rapidly become a crucial component of the nation's underground economy, offering a minimal charge and unrestricted ability to swiftly transfer, conceal, and launder money.

Tether's involvement in Cambodia's extensive underground economy is currently facing growing scrutiny, despite the legitimate trading and daily workarounds it provides for the Chinese community in Phnom Penh to bypass China's strict currency controls.

In November, the US Department of Justice confiscated over US$9 million in assets that were linked to over 70 individuals who fell victim to online fraud. This action was taken following a thorough investigation of cryptocurrency wallets associated with Tether Holdings, the corporation responsible for USDT, and the crypto trading platform OKX. Tether announced that it has suspended an extra US$225 million associated with cyber frauds involving the butchering of pigs in Southeast Asia.