Thailand to block unauthorized crypto platforms to combat online crime

Thai authorities have decided to prohibit unauthorized cryptocurrency platforms in order to improve law enforcement’s efficiency in combating internet crime, as per an announcement made on April 19.

Following a meeting of the Technology Crime Prevention and Suppression Committee, Thailand’s Securities and Exchange Commission (SEC) was directed to give the Ministry of Digital Economy and Society information about unlicensed digital asset service providers in order to prevent access to the platforms.

According to the release, the SEC has examined the impact on users and will allow them time to manage their accounts before they are unable to utilize the site.

“Therefore, the SEC requests users of the said platform to quickly withdraw their assets from the platform,” the announcement stated. The Thai SEC also noted previous actions by governments such as India and the Philippines in blocking unauthorized platforms.

Thailand’s regulators have been striving to strike a balance between encouraging the cryptocurrency economy and combating fraud.

On the one hand, it has permitted institutional investors and very high-net-worth individuals to invest in crypto exchange-traded funds (ETFs), as well as retail investors to invest without restriction in digital tokens backed by real estate or infrastructure; on the other hand, it has mandated that custodians have a backup plan in place if anything goes wrong.

Meanwhile, on March 13, Thailand’s cabinet approved a tax exemption measure for crypto earnings to boost the country’s competitive edge in digital finance. The strategic move targets earnings derived from investment tokens, granting investors a big advantage by exempting these profits from personal income tax calculations.