Thailand Set to Block Access to Unlicensed Crypto Platforms

Thailand will restrict access to unauthorized crypto platforms due to concerns of law enforcement effectiveness and money laundering risks.

According to a Friday announcement, the Securities & Exchange Commission (SEC) will refer the matter to the Ministry of Digital Economy and Society (MDES) for further action. MDES will then initiate the appropriate legal process, potentially including a court petition.

The regulator cited the examples of India and the Philippines. Both countries have restricted access to unauthorized cryptocurrency platforms.

Recognizing potential inconvenience to users, the SEC said will allow a grace period for users to manage their accounts before service termination. However, it urged users to promptly withdraw their assets from such platforms.

Previously, the SEC said it pursued legal action against unauthorized digital asset businesses such as Binance and Bybit. The regulator further cautioned the public against engaging with unlicensed digital asset businesses. These businesses lack legal protections, potentially exposing investors to financial risks.

To ensure a safe environment, the SEC encouraged crypto investors to consult the official list of licensed operators.

The Thailand Digital Asset Association issued a recent warning to Thai users, highlighting the potential for increased cyberattacks due to the recent uptrend in crypto prices.

“Everyone expects the cryptocurrency market to be on a bull run this year, thanks mainly to the launch of spot Bitcoin exchanged-traded funds and the halving of Bitcoin,” said the association’s director Suppakrit Boonsat.

Separately, Thai state authorities emphasized the need for regulations governing peer-to-peer (P2P) crypto transactions.

Minister Prasert Jantararuangthong specifically called upon regulators to develop and implement a framework that addresses P2P crypto purchases and sales, aiming to mitigate the risks of online fraud.