Thailand is intensifying its efforts to combat online crimes related to digital assets through the implementation of new amendments to several national laws. On April 8, the Thai cabinet approved modifications to emergency decrees governing digital asset businesses and measures for cybercrime prevention, as announced by the Thai Securities and Exchange Commission (SEC).
The recent legal amendments aim to strengthen the measures against digital asset mule accounts, restrict foreign cryptocurrency peer-to-peer (P2P) platforms, and enforce stringent financial penalties that can reach up to $8,700 along with potential imprisonment for a duration of three years.
The new regulations are expected to be enforced soon, taking effect after their publication in the Royal Thai Government Gazette.
Key Measures to Combat Mule Accounts and Money Laundering
Among the new regulations, crypto asset service providers (CASPs) will be required to gather and report pertinent transaction data associated with online scams and take necessary actions to suspend such transactions. The amendments also grant authorities the power to block foreign CASPs from offering services to local users, thereby tightening controls aimed at preventing money laundering activities.
“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.”
Restrictions for Foreign Crypto P2P Services
The newly enacted laws specifically target foreign crypto P2P service providers, categorizing them as digital asset exchanges under the Digital Asset Business Law. This regulatory framework aims to deter and prevent these foreign platforms from servicing Thai investors.
Source: ChartNerd
Through this latest regulatory development, Thailand aims to limit crypto P2P transactions strictly to local providers to mitigate potential risks associated with foreign CASPs.
Cointelegraph reached out to the Thai SEC and crypto exchange Binance for comments regarding these restrictions but did not receive a response at the time of publication.
Despite these regulatory adjustments, local authorities have shown interest in promoting cryptocurrency adoption by approving pilot crypto payment trials in select cities, such as Phuket, and considering the approval of cryptocurrency exchange-traded funds (ETFs).
As the landscape of digital assets continues to evolve, Thailand’s proactive approach underscores its commitment to maintaining financial integrity while addressing the challenges posed by cybercrimes and foreign influences.
