Thailand is cracking down on cybercrime with sweeping new regulations targeting the use of digital assets in illicit activities. At the heart of the country’s latest legislative overhaul is a clear message: foreign crypto P2P services will no longer be welcome without strict oversight.
Cabinet Approves Tougher Laws to Combat Crypto-Related Crimes
On 8 April, Thailand’s cabinet approved critical amendments to two key emergency decrees—one concerning digital asset businesses and the other focusing on cybercrime prevention. The Thai Securities and Exchange Commission (SEC) confirmed the move, signalling a significant tightening of regulatory control over the digital asset sector.
The new laws specifically aim to tackle rising cases of mule accounts, which are often used to launder illicit funds through crypto P2P services. Offenders could now face fines of up to $8,700 (approximately 320,000 Thai Baht) and imprisonment for up to three years.
New Compliance Burdens for Crypto Asset Service Providers
The revised regulations impose tougher obligations on Crypto Asset Service Providers (CASPs), requiring them to monitor and report suspicious transactions linked to scams and cybercrime. They must also swiftly freeze or suspend such activities when detected.
Authorities will now have the legal power to block foreign crypto P2P services from offering their platforms to Thai users. This is a direct attempt to shield domestic users from international bad actors and reduce the nation’s exposure to cross-border money laundering.
Joint Liability for Financial and Digital Service Providers
Interestingly, the new regulations extend beyond crypto firms. The SEC highlighted that traditional institutions—such as commercial banks, telecom operators, and social media platforms—must now share responsibility for damages caused by cybercrimes.
“If these parties fail to implement adequate cybersecurity standards as mandated, they could be held liable for losses resulting from digital fraud,” the SEC noted.
This reflects a growing recognition that the fight against cybercrime requires a coordinated approach, especially in ecosystems where crypto P2P services intersect with broader financial and communication networks.
Foreign Crypto P2P Services Under Fire
Thailand’s updated framework squarely targets foreign crypto P2P services, classifying them under the country’s Digital Asset Business Law and barring them from operating without approval.
The SEC stated the changes are intended to “deter and prevent” unauthorised international platforms from accessing Thai markets, especially those not registered or regulated within the country.
The goal appears to be simple: to localise crypto P2P services, keep them within the purview of Thai regulators, and eliminate risks posed by foreign service providers.
Balancing Regulation with Innovation
Despite the restrictive tone of these new laws, Thailand remains open to innovation in the digital asset space. Regulators have signalled their intent to promote responsible adoption, such as trialling crypto payment schemes in tourist hubs like Phuket and even evaluating the approval of cryptocurrency exchange-traded funds (ETFs).
While crypto P2P services come under tighter scrutiny, the broader crypto landscape in Thailand still holds potential for growth, provided it aligns with government standards for consumer protection and anti-money laundering compliance.
A New Era for Crypto Regulation in Thailand
Thailand’s approach reflects a broader trend among Southeast Asian nations seeking to assert control over their digital economies. The Thai government is betting on security over decentralisation by cracking down on foreign crypto P2P services and mandating stronger collaboration among digital and financial service providers.
Whether this will curb cybercrime without stifling innovation remains to be seen. However, one thing is certain: the era of unregulated crypto P2P services operating freely in Thailand is coming to a swift end. For the latest and most complete crypto news and analysis, stay glued to The Bit Gazette.
