As of April 19, Thai officials have indicated that they are taking firm action against unapproved cryptocurrency sites in an effort to strengthen law enforcement’s capacity to combat cybercrime.
Thailand’s Securities and Exchange Commission (SEC) has been entrusted with providing the Ministry of Digital Economy and Society with intelligence on unlicensed digital asset service providers in order to prevent access to such platforms, in accordance with the Technology Crime Prevention and Suppression Committee’s deliberations.
Thailand’s Crypto Regulatory Balancing Act
Users are given a grace time to manage their accounts before access is restricted, as part of the SEC’s review, which is detailed in the statement. The notice stressed, “Therefore, the SEC requests users of the said platform to quickly withdraw their assets from the platform,” citing other countries’ similar actions, such as those in the Philippines and India.
Thailand’s regulatory initiatives show a careful balancing act between combating fraud and encouraging the expansion of the bitcoin economy. While retail investors have unrestricted access to digital tokens backed by real estate or infrastructure, custodians are required by strict mandates to have contingency plans in place for unforeseen circumstances. Institutional investors and high-net-worth individuals are permitted to invest in crypto exchange-traded funds (ETFs).
To further strengthen Thailand’s competitive advantage in digital finance, the cabinet of the country passed on March 13 a law exempting cryptocurrency revenues from taxes. This is a calculated strategy that targets investment token profits and gives investors a big benefit by not including such gains in personal income tax calculations.