Crypto’s footprint is expanding—and so are the complications. From funding cybercrime to challenging local and international laws, this week’s stories show how digital assets are testing the limits of global enforcement and innovation.
The UNODC sounds the alarm on crypto crime. In a recent report, it says organized crime groups are using illegal crypto mining to expand their cybercrime operations around the world.
South Africa steps up oversight as the Financial Intelligence Centre (FIC) will introduce the international crypto travel rule in April 2025, marking a big move toward stronger anti-money laundering controls across borders.
And in the US, Arizona hit the lead in the state-level race to establish government-backed crypto reserves when its House Committee passed the Strategic Assets Reserve Bill. However, a Governor threatening to veto all Bills until a health crisis is averted by the legislature could block its path.
Find out more about each of these stories below.
UNODC report warns that cybercrime syndicates are laundering billions through illegal crypto mining
The UNODC released its report on Southeast Asian cybercrime developments on April 21, 2025.
Entitled Inflection Point: Global Implications of Scam Centres, Underground Banking and Illicit Online Marketplaces in Southeast Asia, it warns of the global expansion of cyber-enabled scams from the region and emphasizes the need for international cooperation to counter the threat.
The report highlights how crypto mining is emerging as a dangerous weapon in the hands of organized crime groups (OCGs) that mine crypto in regions with poor regulatory frameworks beyond the oversight of AML/CFT controls, stealing local electricity supplies. This enables OCGs to turn vast sums of fraudulently obtained funds into apparently clean digital assets quickly and at low cost.
Some examples include:
- In February 2025, a house explosion resulted in Malaysian authorities discovering an illegal crypto mining setup during the country’s ongoing crackdown on the practice.
- In March 2025, Thai authorities uncovered 63 illegal mining operations which had fleeced over $300,000 in electricity.
- In late 2024, rolling blackouts in Iran’s capital, Tehran, and elsewhere were suspected to be caused by illegal crypto mining,
- In Libya, which has very low electricity prices, officials claimed recent city-wide blackouts were caused by illegal crypto mining operations.
The UN urges countries and jurisdictions to strengthen their cybersecurity frameworks, enforce regulations governing digital finance, and improve international cooperation to counter the expanding threat of criminal exploitation of digital assets.
Why this matters
The report highlights how illegal crypto mining funds organized crime, exposing gaps in cybersecurity and regulation. It further underscores the importance of coordinated international law enforcement, improved monitoring of energy usage, and better digital tracking and tracing of illegal mining operations. For investigators, the report offers critical insights into crypto’s evolving role in transnational crime.
Learn more about this story at Decrypt.
South African authorities to implement crypto travel rule on April 30, 2025
The South African financial regulator, the FIC, is set to enforce its strict new cryptocurrency regulations as of April 30, 2025. Directive 9 requires that all Crypto Asset Service Providers (CASPs) comply with the “Travel Rule,” which requires them to collect and share detailed customer information for all crypto transactions.
The deadline marks the end of the grace period CASPs were granted from November 15, 2024, to achieve full compliance with the Travel Rule, which covers all crypto transactions regardless of their value. For transactions above R5,000 ($268), CASPs must record further personally identifiable information, such as identity or passport numbers, dates of birth, and contact details.
The FIC also offered CASPs guidelines on developing risk-based policies to govern self-hosted wallets. These transparency-enhancing measures have been implemented to curb money laundering and terrorist financing, aligning South Africa with the Financial Action Task Force (FATF) Recommendations.
CASPs are urged to act swiftly to meet their compliance obligations, avoid penalties and help South Africa achieve its potential of becoming one of the continent’s crypto hubs.
Why this matters
South Africa’s enforcement of the Travel Rule signals the country’s commitment to achieving regulatory alignment with the FATF recommendations. It also pressures crypto exchanges to upgrade their compliance regimes, while compliance teams from abroad should be aware of it when dealing with funds traveling to or from South Africa. Additionally, it offers regulators a framework for combatting money laundering and terrorism financing.
Learn more about this story at Techpressionmedia.
Arizona crypto reserve Bill leads multi-state race, but could hit political snag
Arizona took the lead over a handful of US states vying to be the first in the country to have government-backed crypto reserves on April 17, 2025, when the House Committee of the Whole passed the Strategic Digital Assets Reserve Bill (SB 1373) with a 17 to 12, bi-partisan majority.
This puts SB 1373 just one more sitting House Committee vote away from reaching the desk of Democratic Governor Katie Hobbs. However, Governor Hobbs, who has a history of vetoing Bills and had done so 15 times in the previous week, vowed to veto all Bills until the Republican-led legislature passes one which provides financial relief to an ongoing state funding crisis for services to people with developmental disabilities.
The Bill put Arizona’s crypto adoption legislation ahead of several other crypto-forward states such as Utah and Texas, which both passed Bitcoin reserve bills in March 2025, while New Hampshire also recently approved similar legislation.
If SB 1373 is passed, a Digital Assets Strategic Reserve Fund composed of seized digital assets will be established and managed by the State Treasurer, who can invest up to 10% of the available funds per financial year and loan out the reserve’s assets to improve returns, if this does not increase financial risks.
The House Committee also passed Arizona Strategic Bitcoin Reserve Act (SB 1025), which, although Bitcoin-specific, allows the Treasurer and the state’s retirement fund managers similar investment freedoms to SB 1373. If either SB 1373 or SB 1025 come into effect, Arizona will break new ground in US state-level crypto adoption.
Why this matters
Arizona’s crypto reserve bills could set a national precedent for state-level digital asset investment, influencing regulatory frameworks and inviting exchange partnerships to its friendlier crypto climate. The stance of Governor Hobbs could stall this progress, though for reasons she possibly believes are noble.
This demonstrates how political gridlock over unrelated funding issues highlights the complex interplay between innovation, public policy, and legislative priorities in shaping the future of crypto governance, which governments, regulators, and exchanges should take heed of.
Learn more about this story at Cointelegraph.
