Shocking Revelation: Huione Guarantee, a fraudulent online marketplace from Southeast Asia, has attracted over $11 billion through cryptocurrency.
Origin and Functions of Huione Guarantee
A recent investigation conducted by analysts at Elliptic revealed the shocking scale of fraudulent activities by the online platform Huione Guarantee. According to the research, this platform, widely used in Southeast Asia for illegal transactions, conducted financial operations totaling at least $11 billion, using cryptocurrency.
Structure and Operations
Huione Guarantee, part of the Huione Group conglomerate owned by the ruling Hun family in Cambodia, was founded in 2021. Initially conceived as a platform for trading legitimate goods such as real estate and automobiles, it has become a magnet for cybercriminals since its inception, providing services related to money transfer and laundering.
Regulatory Initiatives and Legislation
Since 2022, the Russian Ministry of Finance has actively advocated for the development of comprehensive regulation of digital currencies. As part of this initiative, a bill was prepared to legalize cryptocurrency exchanges in Russia. However, the lack of consensus with the Central Bank led financial authorities to focus on creating an experimental legal regime. The Bank of Russia continues to maintain skepticism about legalizing cryptocurrency transactions within the country.
Current Status of Draft Laws
The date for the consideration of two key bills on regulating mining and cryptocurrency settlements for foreign economic activities in the State Duma has not yet been set. These bills were included in the plan for June but have not been reviewed yet.
State Initiatives
In late 2022, Prime Minister Mikhail Mishustin instructed the Ministry of Finance, the Central Bank, Rosfinmonitoring, the Federal Tax Service, and the Federal Security Service to develop a mechanism for using cryptocurrencies in international settlements. In this context, the Moscow Exchange and the St. Petersburg Exchange were considered as possible service centers for conducting such operations. The government began developing mechanisms for implementing these settlements.
Current Market Situation
It is interesting to note that while legislative initiatives and projects are still being discussed and developed, Russian companies are already actively using cryptocurrency for cross-border payments. These operations are reportedly carried out in limited volume and are often used for settlements with unfriendly countries.
The exposure of the scale of Huione Guarantee’s operations highlights the need for accelerated and effective regulation of digital currencies. A platform operating on the edge of the law demonstrates how easily cryptocurrencies can be used in fraudulent schemes, underscoring the relevance and importance of developing clear and strict norms for controlling the use of digital assets in the global economy.
