Thailand’s SEC has amended digital asset and cybercrime laws, targeting crypto mule accounts and restricting foreign crypto P2P platforms.
By Bhushan Akolkar
Editor Hamza Tariq
Updated
3 mins read
Financial regulators in Thailand are stepping up measures to combat online crimes involving cryptocurrencies and taking corrective measures by introducing new amendments to the existing national laws.
On April 8, the Thai Securities and Exchange Commission (SEC) announced that the cabinet has approved amendments to the emergency decrees on digital asset businesses and cybercrime prevention.
The revised laws also aim to boost measures against crypto mule accounts while imposing restrictions on foreign cryptocurrency peer-to-peer (P2P) platforms, and introducing stricter penalties. Violators could face fines of up to $8,700 and imprisonment for up to three years.
The new regulations will be implemented after their publication in the Royal Thai Government Gazette, with enforcement expected in the near future.
The updated financial regulations in Thailand will mandate crypto asset service providers (CASPs) to collect and report transaction data associated with online scams and to suspend such activities promptly.
Thai authorities will have the power to block foreign CASPs from offering services to local to local users. This way, it will reinforce efforts to combat money laundering.
Apart from the crypto sector, the amendments will also impose additional joint responsibilities on non-crypto businesses, which will include telecom providers, commercial banks, and social media platforms. This signals a broader approach to tackling financial and cybercrime. Speaking on this matter, the Thai SEC said:
“Requiring commercial banks, telephone and telecommunications network providers, social media service providers and digital asset business operators to take joint responsibilities for damages caused by cybercrimes if they fail to comply with the standards or measures for preventing cybercrimes as specified by regulatory authorities.”
Thailand’s new financial laws seek to deter and prevent foreign crypto peer-to-peer (P2P) service providers, classified as crypto exchanges, under the Digital Asset Business Law, according to the SEC.
The regulations by the SEC will also restrict other types of foreign crypto asset service providers (CASPs) from offering services to Thai investors. This will ultimately limit P2P transactions to local providers to mitigate risks associated with foreign platforms.
Thai SEC has been working on several regulatory measures this year while accommodating the upcoming crypto space. As reported earlier this year, the SEC seeks to modernize its capital markets through the introduction of a blockchain-powered tokenized securities trading platform.
The upcoming platform aims to enhance trading efficiency and transparency by leveraging blockchain technology. This innovation will allow investors to easily buy and sell digital representations of traditional assets.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.