Thailand has made the decision to prohibit unlicensed cryptocurrency exchanges in order to curb online crime.
By Bit, OKX, Gate.io, and Bitkub are some of the well-known exchanges in Thailand.
Thailand has mandated that all cryptocurrency firms operating within its jurisdiction must obtain official licenses and approval to conduct business. The global cryptocurrency market has been expanding rapidly, especially now, with many cryptocurrencies like Bitcoin experiencing a bull run. As more investors enter the crypto sphere, governments worldwide are taking steps to strengthen regulations for companies and exchanges involved in this volatile sector. The goal is to ensure that cryptocurrency investments do not cause financial harm to investor communities.
This week, the Securities and Exchange Commission of Thailand issued a public order stating that it is collaborating with the Thai government to block unauthorized providers of digital asset services.
“In the meeting held on April 19, 2024, it was decided to instruct the SEC to provide information on unauthorized digital asset service providers to the Ministry of Digital Economy and Society and proceed to block access to the platform of such service providers,” said Pornanong Busaratrakul, Secretary-General of the Thai SEC, in an official statement.
Earlier this year, the Indian government announced that cryptocurrency firms not registered with the Financial Intelligence Unit (FIU) would not be permitted to operate in the country. Cryptocurrencies enable peer-to-peer transfers of large sums of money, including across borders, in real time. Due to the largely anonymous nature of crypto transactions, malicious actors often exploit crypto assets for illicit activities such as money laundering.
Governments worldwide are taking measures to curb the misuse of digital assets before integrating the sector into the existing global financial systems uniformly. In a public order, the Thai government has urged citizens to withdraw any funds held on unregistered crypto exchanges to avoid potential financial losses once the ban on unregistered exchanges takes effect.
Platforms like ByBit, OKX, Gate.io, and Bitkub are popular choices for crypto exchange services in Thailand. Thai authorities have now published a list of entities offering crypto-related services without official approval.
“The SEC advises the public and investors to exercise caution when using services provided by unlicensed digital asset operators, as they will not be legally protected. There is a potential risk of deception, including scams, as well as the risk of involvement in money laundering,” the statement cautioned.
The Thai authorities are seeking public assistance in identifying unlicensed service providers in the digital assets sector. Thailand’s efforts to strengthen oversight of crypto-related operations come as the cryptocurrency industry expands in this popular tourist destination. It is estimated that 13.02 million people in Thailand, accounting for 9.3 percent of the total population, own cryptocurrencies.
Crypto-related crimes have already inflicted financial losses on Thai citizens, prompting the government to take measures to prevent the exploitation of crypto assets within its borders. In August 2023, Thailand’s Ministry of Digital Economy reported that over 200,000 Thai nationals had fallen victim to scams on Facebook, where fraudsters enticed them with crypto schemes and high-return auctions, among other fraudulent activities. The total financial loss from these scams amounted to THB 10 billion (approximately Rs. 2,370 crore), according to Thai authorities at the time.
