Thailand Tightens Regulations on Cryptocurrency Businesses

The Securities and Exchange Commission of Thailand has adopted amendments imposing additional restrictions on foreign crypto platforms and new requirements, including data collection and blocking of illicit transactions.

The changes affect the Digital Asset Business Act and the Cybercrime Act. The regulator aims to strengthen measures against cybercrime and “money mules.”

Officials stated that the amendments will enable the Commission to more effectively enforce laws on foreign crypto projects, which are prohibited from providing services to the country’s citizens.

One of the factors cited was a clearer definition of activities considered “incitement” by such platforms, including:

• offering investors payment options in Thai baht;
• accepting payments through bank accounts in Thailand;
• using the Thai language on websites or applications.

The Ministry of Digital Economy and Society has been granted the authority to “more swiftly” block websites and applications of foreign crypto projects offering services to investors in Thailand.

Crypto business operators are required to exchange information, as well as verify and block illicit transactions “similar to commercial banks.”

The regulator intends to issue a “blacklist” of individuals and wallets with which interaction is prohibited.

Specific penalties are prescribed for “money mules” who provide accounts to cybercriminals, including up to three years in prison and/or a fine of up to 300,000 baht (~$8700). The same applies to individuals who open accounts in banks or on crypto platforms at the behest of third parties.

Banks, telecom providers, social networks, and crypto businesses that violate prescribed standards are required to “bear joint responsibility” for damages from cybercrimes.

The amendments will take effect upon publication in the government publication The Royal Gazette.

In March, the Commission approved the use of USDT for trading and payments.