Thailand has approved significant amendments to the digital asset and cybercrime laws to combat cybercrime and online scams.
Combating Mule Accounts in the Crypto Industry
The Thailand Cabinet has approved significant amendments to the Digital Asset Business Law and the Cybercrime Law, aiming to bolster the nation’s defenses against cybercrime and the use of “mule accounts” in the digital asset space. The move comes as Thailand intensifies its efforts to protect public financial transactions and combat online scams. Both laws are set to take effect upon their publication in the Government Gazette.
According to a statement, the amendments seek to strengthen cooperation between financial institutions, digital asset businesses, and regulatory bodies. A key focus is the crackdown on digital asset mule accounts, which are used to facilitate illicit activities.
Pornanong Budsaratragoon, Secretary-General of the Securities and Exchange Commission (SEC), highlighted the collaborative efforts between his organization, the Thai Digital Asset Operators Trade Association (TDO), and digital asset business operators in developing industry standards to combat these accounts. This initiative is said to mirror the banking sector’s measures against traditional banking mule accounts.
As per the statement, the amended framework will enable faster information exchange between relevant agencies and enhance the ability to screen and suspend suspicious transactions. It also introduces a blacklist of individuals and digital asset wallet addresses linked to cybercrimes. This effectively bars them from conducting transactions with registered digital asset businesses.
A significant aspect of the amendments is the shared responsibility imposed on commercial banks, telecom providers, social media platforms, and digital asset businesses for damages caused by cybercrimes if they fail to comply with regulatory standards. Furthermore, individuals who open or allow their digital asset accounts to be used for cybercrimes face up to three years in prison and a fine of up to $8,857 (300,000 baht).
Under the new regime, the Ministry of Digital Economy and Society is now authorized to swiftly block websites and applications of foreign platforms that solicit or advertise services to Thai investors. This measure aims to prevent these platforms from being used for money laundering and other illicit activities.
The SEC has clarified the definition of soliciting activities within Thailand, which includes offering Thai Baht payment options, accepting payments through Thai bank accounts, and using the Thai language on platforms. This clarification is expected to enhance the SEC’s enforcement capabilities against foreign exchanges.
“The SEC will collaborate with the Ministry of Digital Economy and Society and relevant agencies, including the TDO and digital asset business operators, to implement the aforementioned laws to enhance the efficiency in preventing the use of digital assets as a means for money laundering, and to reduce public damage from online crimes,” Budsaratragoon stated.