Thailand has decisively closed its borders to unregulated foreign cryptocurrency operations as part of a broader initiative to clamp down on online financial crimes.
This move is supported by extensive amendments to emergency decrees, enhancing the regulation of digital asset businesses and cybercrime prevention efforts.
On Tuesday, the Thai Securities and Exchange Commission (SEC) revealed that the cabinet has sanctioned updates to pivotal emergency decrees. These updates are designed to regulate digital asset enterprises more tightly and curb cybercrime.
The SEC highlighted that the updated legislation would focus on curbing foreign peer-to-peer (P2P) cryptocurrency platforms that fall under the scope of Thailand’s Digital Asset Business Law, preventing their operation within the nation.
The revised regulations impose severe penalties for violations, including up to three years of imprisonment, fines of up to 300,000 baht (approximately $8,700), or both. These measures are part of a rigorous endeavour to enhance the oversight of digital asset transactions.
Once these laws are published in the Royal Thai Government Gazette, Thailand’s official journal for new legislation, they will take immediate effect.
The amendments empower authorities to halt suspicious transactions, compel crypto asset service providers to report scam activities, and prohibit foreign platforms from serving Thai users.
However, the legislation’s reach extends beyond just cryptocurrency firms. The SEC has also stated that commercial banks, telecommunications companies, and social media platforms will now share liability for damages arising from cybercrimes if they fail to adhere to preventive standards.
Pornanong Budsaratragoon, SEC Secretary-General, commented that the new laws aim to prevent the misuse of cryptocurrencies for money laundering and to mitigate public harm from online crimes, in cooperation with various digital agencies.
This legislative update comes as Thailand intensifies enforcement actions against crypto-related financial crimes. Last month, Thai police conducted raids on five unlicensed cryptocurrency companies in various locations, including Nakhon Pathom, Samut Sakhon, and Bangkok.
These raids resulted in 11 arrests and the seizure of equipment related to a $29.3 million electronic money scheme that allegedly transferred investments overseas using unregistered wallets.
Despite these stringent measures, Thailand continues to cautiously engage with the cryptocurrency sector.
Earlier this year, Budsaratragoon expressed that Thailand should continue to embrace the global adoption of cryptocurrencies, with considerations for permitting spot Bitcoin ETFs to broaden regulated investment opportunities.
Moreover, Thailand is set to introduce a blockchain-based trading platform for securities firms to issue and trade digital tokens. On February 3, Deputy SEC Secretary-General Jomkwan Kongsakul announced that the SEC is leveraging technology to boost efficiency in the capital market, with forthcoming regulations aimed at fully digitizing the bond market from registration to settlement.
Additionally, the country is exploring the potential for a stablecoin backed by government bonds and plans to trial a Bitcoin payment sandbox to facilitate crypto tourism transactions in Phuket later this year.
