Thailand counters cybercrime with tighter controls on foreign crypto P2P platforms
Thailand has taken steps to tighten controls on digital asset mule accounts and overseas crypto peer-to-peer (P2P) platforms in an effort to combat cybercrime.
Legislative amendments
On April 8, the Securities and Exchange Commission (SEC), a local regulator, published a statement explaining that the Thai cabinet has passed a resolution approving a number of amendments to the Southeast Asian nation’s digital asset business law and its cybercrime law.
The regulator asserted that the amendments are designed to “strengthen measures against cybercrime and mule accounts, enhancing the security of public financial transactions and improving the effectiveness of combating online scams.”
The amendments won’t become effective until such time as they are published in the Government Gazette of Thailand, an official public journal that acts as a primary source for Thai law.
Mule accounts
One aspect that has been addressed is the enhancement of measures taken in an effort to block digital asset mule accounts. Criminals utilize mule accounts in an effort to launder the proceeds of crime.
While this happens with conventional bank accounts, it is also now happening with digital asset exchange accounts and digital asset wallets. Accounts may have been established for legitimate purposes but later fall under the influence of criminals who utilize them for money laundering.
According to a report by the Bangkok Post last month, the Thai SEC had been collaborating with the Thai Digital Asset Operators Trade Association (TDO) and digital asset businesses in order to formulate these new measures.
The standard was also established following consultation with the Bank of Thailand, the Cyber Crime Investigation Bureau, Central Investigation Bureau, the Anti-Money Laundering Office and the Thai Bankers' Association.
It is hoped that these enhanced mechanisms will lead to earlier detection of unusual customer behavior, enabling the authorities to intervene at an earlier stage to block mule accounts.
Going forward, the regulator will collaborate with the TDO in monitoring and evaluating implementation of the new measures. Individuals who allow their digital asset accounts to be used by criminals will face up to three years' imprisonment and a fine of up to 300,000 Thai baht ($8,765).
Blocking P2P platforms
Another change is being implemented in respect of offshore crypto P2P platforms. The objective of that particular measure is to deter and prevent the use of such platforms by investors within Thailand.
It’s envisaged that the Ministry of Digital Economy and Society will now be enabled to move more swiftly in blocking website and application access to these foreign P2P platforms. Such offshore platforms will be deemed to be attempting to solicit local investors if they offer payment options in Thai baht, provide online services or applications using the Thai language or if they accept payments through Thai bank accounts.
Earlier this month, Thai law enforcement raided five unlicensed crypto firms. The raid led to the arrest of 11 individuals, charged with illegally operating e-money services related to enterprises responsible for a combined $29 million turnover.
