Thailand strengthens digital asset laws to tackle cybercrime

Thailand has approved amendments to its Digital Asset Business Law and Cybercrime Law to combat cybercrime and online scams, particularly targeting “mule accounts” in the digital asset sector.

The new laws, set to take effect upon publication in the Government Gazette, aim to enhance collaboration between financial institutions, digital asset businesses, and regulators.

Pornanong Budsaratragoon, Secretary-General of the Securities and Exchange Commission (SEC), emphasized that these measures mirror those used in the banking sector to address mule accounts.

The amendments enable faster information exchange among agencies and introduce a blacklist of individuals and wallet addresses linked to cybercrimes.

This blacklist prevents these entities from conducting transactions with registered digital asset businesses.

A significant aspect of the legislation is shared accountability among banks, telecom providers, social media platforms, and digital asset firms for damages caused by cybercrime if compliance standards are not met.

Individuals who allow their accounts to be used for illegal activities face penalties of up to three years in prison and fines of $8,857 (300,000 baht).

The Ministry of Digital Economy and Society is now empowered to block websites and applications operated by foreign platforms soliciting Thai investors.

This measure seeks to curb money laundering and other illicit activities facilitated through unregulated platforms.

The SEC has clarified that soliciting activities within Thailand include offering payment options in Thai Baht, using Thai bank accounts for transactions, or employing the Thai language on platforms.

“The SEC will collaborate with the Ministry of Digital Economy and Society and relevant agencies... to enhance efficiency in preventing the use of digital assets as a means for money laundering,” Budsaratragoon stated.