The Securities and Exchange Commission (SEC) is intensifying its efforts to combat digital asset mule accounts by tightening regulations on foreign platforms used for money laundering to safeguard the public.
Pornanong Budsaratragoon, the SEC’s secretary-general, stated that since 2024, the regulator has partnered with the Thai Digital Asset Operators Trade Association and digital asset businesses to strengthen the fight against mule accounts.
On March 12, they collectively introduced an industry-wide standard aimed at preventing and managing mule accounts, aligning it with the existing standards in the banking sector.
The cabinet approved revisions to the 2018 Emergency Decree on Digital Asset Business and the 2023 Emergency Decree on Measures for the Prevention and Suppression of Technology Crimes.
These amendments aim to improve the effectiveness of combating cybercrime and mule accounts, ensuring safer financial transactions for the public and enhancing efforts to address online fraud. Both laws will take effect upon publication in the Royal Gazette.
Ms. Pornanong emphasized that the adjustments to these decrees will significantly bolster measures against digital asset mule accounts. This includes establishing a more robust data-sharing framework among relevant agencies and enhancing the ability to block the use of foreign trading platforms for money laundering.
Authorities will be able to swiftly block websites and applications operated by foreign digital asset businesses targeting Thai investors, thereby strengthening law enforcement and fostering cooperation among digital asset companies, banks, and government institutions.
Digital asset businesses are now required to share information, screen for suspicious accounts, and suspend transactions or accounts associated with cybercrime, following protocols similar to those of commercial banks.
Additionally, they must participate in compensation schemes for victims, ensuring faster reimbursements for those affected by fraud.
A blacklist will be created comprising individuals or digital wallet addresses connected to cybercrime, with businesses prohibited from engaging in transactions with these parties, according to Ms. Pornanong.
Banks, telecom providers, social media platforms, and digital asset businesses may be held jointly responsible for any damages if they fail to adhere to regulatory guidelines aimed at preventing cybercrime.
Individuals who open or let others use their digital asset accounts for illicit activities could face up to three years in prison, fines of up to 300,000 baht, or both. This also applies to those who are compensated for opening bank or digital asset accounts for others.
The amendments will also implement measures to prevent foreign peer-to-peer platforms, classified as digital asset exchanges under Thai law, from providing services to Thai investors, along with other foreign digital asset businesses.
The Digital Economy and Society (DES) Ministry will have the authority to quickly block websites and apps of foreign digital asset businesses that market their services to Thai investors.
These legislative updates will enhance the SEC’s ability to take action against foreign digital asset platforms operating within Thailand and targeting Thai residents by offering transactions in baht, accepting local bank account transfers, or using the Thai language on their websites or apps, stated Ms. Pornanong.
“The SEC will work alongside the DES Ministry, relevant agencies, the TDO, and digital asset businesses to implement these laws effectively. Our objective is to prevent the misuse of digital assets for money laundering and minimize public losses stemming from cybercrime,” she concluded.
