- The crypto industry in Thailand will undergo a regulatory reform.
- The Thailand SEC will restrict crypto platforms that fail to comply with its guidelines.
- Regulatory standards are evolving across the globe.
Regulations within the crypto industry are constantly evolving, with financial authorities worldwide tightening their oversight across various regions. Recent years have witnessed a shift toward more stringent standards and reforms within local crypto industries, driven by the commitment to scrutinize offerings and safeguard investor interests.
Joining the global trend, the Thailand regulatory commission is set to initiate a new regulatory framework as part of its efforts to enhance oversight within the local crypto sector.
Thailand SEC Eyes Crypto Industry Reform
According to an official notice on the Thai Securities and Exchange Commission website, the SEC will commence coordination with the Ministry of Digital Economy and Society (DE) and other related government agencies to block access to unauthorized digital asset service providers’ platforms within the region.
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The decision, reached during the April 19 Technology Crime Prevention and Suppression Committee meeting, is aimed at increasing the efficiency of law enforcement to combat the increasing pressure of cybercrime, such as preventing malicious actors from utilizing the asset class as a channel to facilitate financial wrongdoings.
The SEC will target digital asset business operators operating without necessary authorization and soliciting services in Thailand, and restrict investor access to the flagged platforms. While the commission did not explicitly state affected platforms, it reiterated its warning against exchanges including Binance and Bybit in the past, mandating users of such service providers to withdraw their assets.
Asserting precedence for its regulatory decision, the Thailand SEC stated that its approach to crypto regulation is in line with actions adopted in countries such as India and the Philippines.
India and Philippines Strengthen Crypto Crackdown
Over the past year, the regulatory commissions in India and the Philippines have intensified actions against non-compliant crypto platforms.
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In January 2024, the Indian regulatory watchdog, the Financial Intelligence Unit (FIU-IND), sanctioned several offshore crypto exchanges for illegal operations and failure to comply with local regulatory requirements. Among the platforms flagged were Binance, OKX, Kraken, and Bitfinex, all of which faced restrictions and denial of investor access as a result.
Similarly, the Philippine SEC, in March 2024, restricted local access to all Binance trading and exchange platforms, asserting that the exchange’s operator in the Philippines was attracting and enticing users to engage in trading activities without a license.
Other crypto trading platforms such as eToro have also come under regulatory scrutiny in the region for not fulfilling the requirements to operate as a licensed broker and have been flagged by the Philippine SEC as unauthorized to serve local investors.
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