In a move to combat online crimes such as money laundering, Thailand has announced its intention to block unlicensed cryptocurrency exchanges from operating within its borders. This decision, according to Thai SEC Secretary-General Pornanong Budsaratragoon, follows a similar approach adopted by India and the Philippines aimed at ensuring compliance with local regulations.
Guiding Public Action
The Thai Securities and Exchange Commission (SEC) is set to submit a list of non-compliant crypto exchanges to the Ministry of Digital Economy and Society. This list will inform a forthcoming ban, which was declared after the Technology Crime Prevention and Suppression Committee meeting on April 19. In preparation, the Thai SEC has advised crypto investors to withdraw their funds from these platforms to avoid potential losses once the ban is implemented. The SEC has emphasized the risks associated with unlicensed exchanges, including scams and involvement in money laundering activities.
Tools for Investor Protection
To assist the public and prevent them from falling into regulatory traps, the SEC has developed the “SEC Check First” application. This tool allows investors to verify whether a crypto exchange is licensed before engaging with it. Prominent exchanges like Binance have already been flagged as unregistered, hinting at their possible closure in Thailand once the ban is effective.
Broader Implications and Global Trends
This regulatory push in Thailand is part of a larger trend where governments are scrutinizing the operations of crypto exchanges more closely. For instance, Europe is considering regulations that might impact decentralized finance (DeFi) protocols. According to MakerDAO co-founder Rune Christensen, new rules could demand stringent licensing requirements for DeFi interfaces, potentially reshaping how these platforms operate globally.
Thailand’s proactive measures reflect a growing global momentum towards stringent crypto regulations, aiming to protect investors while fostering a safe and compliant digital asset environment.
