Thailand Targets Foreign P2P Crypto Platforms in New Legal Overhaul

Thailand has shut the door on unregulated foreign crypto services as it ramps up efforts to tackle online financial crime, backed by sweeping new legal amendments that target everything from mule accounts to rogue P2P platforms.

The Thai Securities and Exchange Commission announced Tuesday that the cabinet has approved updates to key emergency decrees, introducing new measures to regulate digital asset businesses and prevent cybercrime.

The SEC said the new laws will be used for “deterring and preventing” foreign crypto peer-to-peer (P2P) platforms, which are “qualified as digital asset exchanges under the Digital Asset Business Law,” from operating in Thailand.

The changes introduce strict penalties of up to three years in prison, fines reaching $8,700 (300,000 baht), or both, as part of an intensive push to tighten oversight of digital asset flows.

Once published in the Royal Thai Government Gazette—the country’s official public journal for new laws— the laws will come into immediate effect.

The amendments allow authorities to suspend suspicious transactions, force crypto asset service providers (CASPs) to report scam-related activity, and block foreign platforms from servicing local users.

However, the scope extends beyond crypto-native firms, as according to the SEC, commercial banks, telecom companies, and social media platforms will now face “joint responsibilities for damages caused by cybercrimes” if they fail to follow preventive standards.

SEC Secretary-General Pornanong Budsaratragoon said the law seeks to prevent crypto misuse for money laundering and “reduce public damage from online crimes” through joint enforcement with digital agencies.

Thailand’s crypto crackdown

Thailand’s legislative efforts come amid a surge in enforcement actions targeting crypto-related financial crimes.

Just last month, Thai police raided five unlicensed crypto firms across Nakhon Pathom, Samut Sakhon, and Bangkok, arresting 11 people and seizing equipment tied to a $29.3 million e-money operation that allegedly funneled investments overseas via unregistered wallets.

Despite the clampdown, Thailand continues to engage with the crypto sector in measured ways.

In January, Budsaratragoon said Thailand must “move along with more adoption of cryptocurrencies worldwide,” as the country considers allowing spot Bitcoin ETFs to expand regulated investment options.

Thailand is also preparing to roll out a blockchain-based trading platform for securities firms to issue and exchange digital tokens.

On February 3, Deputy SEC Secretary-General Jomkwan Kongsakul said the agency is “leveraging technology to enhance efficiency in the capital market,” with new rules in progress to fully digitize bond markets, from registration to settlement.

Along with that, the country is allegedly considering a stablecoin backed by government bonds, while planning a Bitcoin payment sandbox to test crypto tourism payments in Phuket later this year.