By Michael Scott
Thailand authorities have extended a crackdown on the crypto industry, with the Economic Crime Suppression Division (ECD) arresting 11 individuals in a recent raid.
The Thai authorities targeted five unlicensed crypto firms to arrest 11 staff during the crackdown to weed out illicit crypto-related activities and actors from the country. The ECD officers secured warrants to search five companies in Bangkok, Samut Sakhon, and the Nakhon Pathom provinces.
Thai Charge 11 for Crypto-related Crime
The ECD head of the operation, Thatphum Jaruptrat, confirmed arresting 11 executives and junior employees. The ECD officers also seized six computers, among other evidence. The raid emerged after the ECD investigation ascertained the arrested individuals were illegally running e-money firms that had collectively realized $29.3 million, translating into 1 billion baht, in annual turnover.
The firms were allegedly acting as the intermediaries for the investors pursuing investment products available overseas. The firms mandated the local investors to remit money into their e-wallets to execute the cross-border purchases.
The raid is unsurprising given that Thailand mandates strict compliance with the 2017 Payment System Act for forex-based e-money businesses. Enterprises are expected to register with the authorities and secure their licensing.
Per the ECD reports, non-registered firms are a conduit for illicit activities, thus facilitating money laundering risk within the country’s financial ecosystem. The non-registration presents opportunities for destroying the economy as a channel for capital flight.
The Thai authorities confirmed charging the 11 suspects for running unlicensed operations and unauthorized electronic money services. This crackdown is not isolated, as the authorities have launched countrywide efforts to curb illegal crypto activity.
Crackdown Against Illicit Crypto Activities
The Cyber Crime Investigation Bureau in Thailand banned the crypto-based prediction platform Polymarket in January, alleging it poses economic and social risks. This precedent the seizure of $2.5 million last month when Thai teamed with the Chinese authorities to freeze the crypto assets and later charged two foreigners with human trafficking and fraud.
The crackdown coincides with the Binance TH disclosure that the country is among the jurisdictions with the highest investment complaints globally. Per BankokPost publication, the crypto exchange revealed receipt of 1,000 data requests from the authorities in the past three years.
The actions by Thailand do not imply a crackdown on the digital assets industry. This stance attracted interest from a Singapore-based advisor to the intergovernmental blockchain initiative, Anndy Lian, hailing the Thai authorities’ devotion to eliminating bad actors in the sector.
Lian hailed the country’s Cyber Crime Investigation Bureau (CCIB) collaboration with Binance to counter the pig butchering schemes. He endorsed the efforts by Thai authorities to eliminate the nasty romance-investment hybrid schemes established to rip off millions from investors.
Lian reflected on a successful operation dubbed Trust No One that led to high-profile arrests and the seizure of huge funds. A similar outcome was witnessed during The Purge initiative last year.
Lian hails the collaborative approach as it led to the detection and elimination of illegal mining operations, including Surat Thani and Chachoengsao. They discovered individuals stealing electricity to power the mining rigs as a testament to Thai authorities’ efforts to eliminate shady crypto activities.
Lian noted that Thai authorities target fraudsters, thieves, and extortion actors more than witnessed in the crypto space. Nonetheless, the authorities retail a zero-tolerance policy for those failing to register with the Securities and Exchange Commission (SEC).
Lian noted the SEC’s devotion to blocking unlicensed crypto exchanges. This led to the block of crypto exchange Bybit with others in 2024 as part of regulating and not shutting down digital assets.
Healthy Industry Growth
Thailand’s crypto industry has registered healthy growth, with the Southeast Asia nation ranking 16th in the 2024 adoption index by Chainalysis. The sector witnessed $50 billion in crypto value inflow between July 2023-24.
Recently, the SEC has committed to updating crypto investment rules involving private and mutual funds. The SEC aims to eliminate ambiguity, thus legitimizing investment within the space.
Lian noted that the SEC is eyeballing the spot Bitcoin exchange-traded funds (ETFs) and stablecoins. This will help it ascertain how to manage and nurture the products rather than kill them. This aligns with the January announcement that the Thai SEC intended to permit local Bitcoin ETFs.
The moves imply that Thailand ranks in the middle in crypto regulations within the Southeast Asian territory. While Thailand has yet to match the liberal nature of Singapore, Lian notes that the country has refrained from imposing a total lockdown as deployed in mainland China.