Key Notes
Financial regulators in Thailand are strengthening their measures to tackle cryptocurrency-related crimes, with a focus on online scams, money laundering, and cybercrime.
- Compliance with the new regulations will be mandatory for crypto asset service providers (CASPs) and non-crypto businesses, including telecom providers, commercial banks, and social media platforms.
- Foreign crypto asset service providers will be restricted from offering services to local users.
- Thai authorities will have the power to block such providers from operating in the country.
Thai Regulators To Block Foreign CASPs
Thai authorities will have the power to block foreign crypto asset service providers (CASPs) from offering services to local users. This is a significant move to prevent money laundering and combat online scams. According to the Thai Securities and Exchange Commission (SEC), the new regulations will require CASPs to collect and report transaction data associated with online scams and to suspend such activities promptly.
| Joint Responsibilities | Businesses with Joint Responsibilities |
| Compliance with standards for preventing cybercrimes | Commercial banks, telecom providers, social media platforms |
| Responsibility for damages caused by cybercrimes | Commercial banks, telecom providers, social media platforms |
The amendments also extend joint responsibilities to non-crypto businesses, which will include telecom providers, commercial banks, and social media platforms. This signals a broader approach to tackling financial and cybercrime. The Thai SEC stated:
“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.”
Foreign Crypto P2P Services Will Face Restrictions
Thailand’s new financial laws seek to deter and prevent foreign crypto peer-to-peer (P2P) service providers, classified as crypto exchanges, under the Digital Asset Business Law, according to the SEC. The regulations by the SEC will also restrict other types of foreign crypto asset service providers (CASPs) from offering services to Thai investors. This will ultimately limit P2P transactions to local providers to mitigate risks associated with foreign platforms. Thai SEC has been working on several regulatory measures this year while accommodating the upcoming crypto space. The SEC aims to modernize its capital markets through the introduction of a blockchain-powered tokenized securities trading platform.
| Blockchain-Powered Tokenized Securities Trading Platform | Key Features |
| Enhances trading efficiency and transparency | Leverages blockchain technology |
The upcoming platform will allow investors to easily buy and sell digital representations of traditional assets. This innovation will allow investors to participate in the global cryptocurrency market while being protected by the regulatory framework. In conclusion, Thailand’s new regulations aim to strengthen its stance on cryptocurrency-related crimes and promote a more secure and transparent financial system. The regulations will be implemented after their publication in the Royal Thai Government Gazette, with enforcement expected in the near future.
