- Thailand approves stricter laws targeting crypto mule accounts and foreign P2P platforms.
- New regulations impose penalties and joint liability on banks, telecoms, and crypto operators.
- Foreign crypto firms must register locally if they engage Thai users or accept baht payments.
Thailand’s cybercrime and digital asset laws have been amended to crack down on online crime related to cryptocurrency. The cabinet approved the measures on April 8 and plan to see the measures in place before the Songkran holidays, pending publication in the Royal Thai Government Gazette.
The amended laws give regulators much more power to curtail suspect platforms by blocking them, preventing foreign peer-to-peer (P2P) crypto services, and imposing penalties. The offenders could be sent to jail for up to three years or fined 300,000 baht ($8,700). The authorities want to clamp down on digital asset mule accounts and cross-border money laundering.
New Measures to Strengthen Oversight and Accountability
Crypto asset service providers are required to monitor and report transactions linked to internet scams by the new amendments. To prevent further misuse, they will need to suspend accounts or transactions linked to flagged wallet addresses and coordinate with authorities to stop further misuse. The digital asset ecosystem will introduce a blacklist to prevent repeat offenders from accessing the digital asset ecosystem.
The changes will impose joint liability on commercial banks, telecom providers, social media platforms, as well as crypto operators. They are subject to prosecution for damages arising from cybercrime if they don’t adhere to regulatory standards to avoid it. Victim compensation will be supervised by the Anti-Money Laundering Office (AMLO) together with suspicious fund transfers.
The laws now compel foreign crypto companies engaged in business in Thailand to register under Thai law. These include those doing business in Thai using Thai language, accepting baht payments, or offering local payment methods. The laws also capture services soliciting Thai users even without a physical presence in the country.
Additionally, the Ministry of Digital Economy and Society has been empowered to swiftly block websites and apps operated by foreign crypto platforms that advertise or engage with users in Thailand.
Expanded Powers for SEC and Law Enforcement
The Securities and Exchange Commission (SEC) will acquire increased authority to supervise and enforce compliance among crypto businesses. The revised laws are in line with the current standards in the banking sector concerning crypto oversight. Like banks, crypto firms will now be forced to freeze suspicious transactions immediately.
Pornanong Budsaratragoon, Secretary-General of the SEC, confirmed coordination with the Thai Digital Asset Operators Trade Association (TDO) and other firms to combat mule accounts. On March 12, they introduced industry-wide standards mirroring those used in the banking industry.
The new laws also extend definitions of cybercrime in existing legislation to cover the crypto wallets and exchanges. It will also help the enforcement of law to quickly tackle scams related to gambling or fraudulent investment schemes.
Along with this, the new rules put in place higher penalties for those who sell personal data. Telecommunication channels used for cybercrimes might be temporarily suspended. Procedures will also be established by Regulators for removing illegal computer data from systems.
Thailand’s SEC said it will continue working with the Ministry of Digital Economy and Society and other agencies to implement the new laws. These efforts aim to reduce public harm, improve enforcement, and prevent the use of crypto services for criminal purposes.
