Thailand Tightens Crypto Rules to Block Illegal P2P Trading and Overseas Exchanges

Thailand Targets Crypto Crime With Tough New Rules

Thailand is taking stronger action against online fraud and cybercrime by tightening its digital asset regulations.

The Cabinet has approved amendments to the Digital Asset Business Act and Cybercrime Law, aimed specifically at illegal crypto activities and foreign platforms targeting Thai users.

The new rules will become law once published in the Government Gazette.

Foreign Crypto Platforms In The Crosshairs

Authorities now have broad powers to block websites and mobile apps linked to suspicious crypto operations, especially those run by overseas exchanges.

These platforms, often operating without local licences, have been a growing concern as they offer peer-to-peer (P2P) crypto services to Thai investors without regulation.

The Securities and Exchange Commission (SEC) has already started enforcing these measures.

One high-profile case involves OKX, a major crypto exchange, which the SEC is suing for allegedly operating in Thailand since 2021 without authorisation.

Tougher Penalties For Illegal Crypto Use

Under the new laws, individuals using crypto wallets for criminal purposes could face up to three years in prison or a fine of up to 300,000 baht, roughly $8,700.

Regulators will also launch a national blacklist to freeze wallets tied to cybercrime, cutting off further access to those funds.

This further reinforces the Thai authorities’ firm stance that the misuse of digital assets for illicit purposes will be met with serious consequences.

Heightened Security Standards For Crypto Firms

Digital asset businesses must now meet the same security expectations as banks.

This includes the ability to immediately suspend suspicious activity and assist victims of financial fraud.

Companies that fail to comply could face penalties or even lose their licences.

Notably, the rules extend beyond crypto exchanges.

Social media platforms, telecom operators, and even banks may be held liable if they allow or fail to act on criminal activity involving their systems.

Why This Move Comes Now

Thailand’s decision to tighten control comes amid rising concerns over crypto-related crimes.

Last December, a 32-year-old Singaporean man was arrested in connection to a transnational cryptocurrency scam involving a fake trading app that defrauded victims of over $649,000.

In February, four Russian nationals were arrested in Phuket for alleged involvement in ransomware operations worth $16 million.

Despite these crackdowns, Thailand continues to show openness to digital assets.

The country recently gave the green light for trading of USDT, a popular stablecoin.

The challenge now is to strike a balance between fostering innovation and protecting the public.

Despite the new rules, crypto is still welcome by authorities in Thailand, as long as it is within the law.

With stricter enforcement and higher standards in place, the country aims to clean up its digital asset space while supporting responsible growth.