- The Thai Securities and Exchange Commission has implemented measures to combat cybercrime and enhance financial security in the country
- New measures include stricter controls on digital asset mule accounts and increased penalties for offenders
- Authorities are empowered to block foreign digital asset platforms that solicit Thai investors without authorization
In a move to bolster financial security, Thailand’s Securities and Exchange Commission has approved amendments to the Digital Asset Business Law and the Cybercrime Law. These reforms introduce stringent measures against digital asset mule accounts and empower authorities to block unauthorized foreign digital asset platforms targeting Thai investors. The amendments aim to enhance the effectiveness of combating online scams and cybercrime, which have been on the increase in the region.
Crackdown on Digital Asset Mule Accounts
As part of its crackdown, the SEC has intensified efforts to eliminate digital asset mule accounts by mandating that digital asset business operators exchange information, screen, and suspend transactions related to cybercrimes, similar to protocols followed by commercial banks. This initiative includes establishing a blacklist of individuals or digital asset wallet addresses linked to cybercrimes, with operators prohibited from conducting transactions with those listed.
Additionally, commercial banks, telecommunications providers, social media platforms, and digital asset businesses are now jointly responsible for damages resulting from cybercrimes if they fail to adhere to specified preventive measures. Offenders who open or allow the use of their digital asset accounts for cybercrimes face up to three years in prison, fines up to 300,000 baht ($8,873), or both.
Preventing Foreign Platforms from Facilitating Money Laundering
The amendments also target the misuse of foreign digital asset exchanges for money laundering, with the Ministry of Digital Economy and Society now authorized to swiftly block websites and applications of foreign digital asset businesses that solicit or advertise services to Thai investors without proper authorization. This measure aims to deter unauthorized foreign peer-to-peer trading platforms and other digital asset operators from offering services locally, thereby enhancing law enforcement efficiency.
Mrs. Pornanong Budsaratragoon, Secretary-General of the SEC, commented on the new rules:
The SEC will collaborate with the Ministry of Digital Economy and Society and relevant agencies, including the TDO and digital asset business operators, to implement the aforementioned laws to enhance the efficiency in preventing the use of digital assets as a means for money laundering, and to reduce public damage from online crimes.
These legal amendments clarify behaviors that constitute solicitation of Thai investors, such as offering payment options in Thai Baht, accepting payments through Thai bank accounts, or using the Thai language on digital platforms. This clarity enhances the SEC’s ability to enforce regulations against foreign digital asset trading platforms
