Thailand focuses on international P2P blockchain platforms in a recent constitutional overhaul

Thailand has increased efforts to combat online financial crime as it ramps up efforts to combat illicit foreign crypto transactions, supported by significant fresh constitutional amendments that cover everything from animal accounts to rogue P2P platforms.

The Thai Securities and Exchange Commission announced on Tuesday that the government has approved changes to important incident decrees and approved innovative measures to manage online resource businesses and stop cybercrime.

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

As part of a comprehensive effort to tighten oversight of digital asset flows, the changes introduce stiff penalties of up to three years in prison and fines of up to$ 8,700 ( 300, 000 baht ) or both.

The regulations will take effect right away once they are published in the , the country’s standard open journal for new regulations.

The amendments make it possible for authorities to suspend suspicious transactions, require crypto asset service providers ( CASPs ) to report suspicious activity, and prevent foreign platforms from providing local users with services.

However, the range extends beyond crypto-native businesses, as commercial institutions, telecommunication companies, and social media platforms will now be subject to” joint commitments for damages caused by cybercrimes” if they fail to adhere to routine standards.

Through shared law enforcement and modern agencies, SEC Secretary-General Pornanong Budsaratragoon said the law aims to “reduce public damage from virtual crimes” and avoid crypto misuse for money laundering.

Thailand’s crypto crackdown

Thailand’s legislative efforts come as a result of an increase in enforcement actions aimed at preventing crypto-related financial crimes.

In a$ 29.3 million e-money operation that allegedly funneled investments overseas via unregistered wallets, Thai police detained 11 people and seize equipment during a raid on five unlicensed crypto firms in Nakhon Pathom, Samut Sakhon, and Bangkok just last month.

Thailand continues to work with the crypto industry in tact despite the clampdown.

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

Thailand is also working on a blockchain-based trading platform to allow for digital token exchange and issuance.

With new regulations in progress to fully digitize bond markets, from registration to settlement, Deputy SEC Secretary-General Jomkwan Kongsakul stated the agency is “using technology to enhance efficiency in the capital market” on February 3.

In addition, Thailand is allegedly considering creating a stablecoin that is backed by government bonds, and it is also planning a Bitcoin payment sandbox to test cryptotourism payments in Phuket in the coming months of this year.