Fintech startups offering digital wallets and instant payments are coming under scrutiny across South Asia for enabling illegal gambling transactions. Authorities in Bangladesh, India, and Nepal report that several emerging platforms lack proper KYC checks and have weak fraud filters.
Gambling apps integrate these wallets through APIs, allowing seamless deposits and withdrawals. In some cases, fintech firms reportedly turned a blind eye to high-risk transaction patterns to drive volume.
Regulators are now considering stricter licensing standards and mandatory anti-gambling filters for payment companies. If left unchecked, fintech may inadvertently fuel a parallel black market economy.
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