Thailand SEC to Block Access to Unauthorized Crypto Sites

Thailand SEC plans to block unauthorized crypto platforms to curb illicit activities.
Thai investors urged to withdraw funds from non-approved crypto sites.
Thailand enhances the legal crypto framework and promotes mainstream adoption.

Thailand’s Securities and Exchange Commission (SEC) has intended to restrict access to unauthorized cryptocurrency platforms. This decision came after discussions with a government committee focused on technology-related crimes held on April 19. The SEC has been instructed to provide the Ministry of Digital Economy and Society with details of digital asset service providers that operate without local authorization. Following court approval, these platforms are expected to be blocked, to curb illicit activities such as money laundering.

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The SEC has emphasized the importance of local investors withdrawing their funds from these platforms to avoid potential risks. Additionally, the regulator has provided a resource, a designated website, where investors can verify the legitimacy of digital asset operators.

Legal Framework and Enforcement Actions

Thailand’s approach to managing cryptocurrency includes creating a stringent legal framework to oversee digital asset service providers. Unauthorized platforms pose a risk because they may facilitate illegal activities and lack legal protection for their users, which increases the risk of fraud. Previous legal actions by Thai authorities include measures against well-known crypto exchanges like Binance and Bybit, which were found to be operating without the necessary permissions.

The SEC’s proactive steps are part of broader efforts to regulate and legitimize cryptocurrency operations within the country. These measures ensure that only compliant platforms can operate, thereby protecting investors and supporting the integrity of the digital economy.

Positive Developments in Thailand’s Crypto Policy

Despite these stringent measures against unauthorized operators, Thailand has shown a positive stance towards the broader adoption of cryptocurrencies. Earlier this year, the country made several crypto-friendly moves, such as extending an exemption from the 7% value-added tax on gains from crypto trading.

Furthermore, Thai institutions have been allowed to invest in U.S. spot bitcoin exchange-traded funds, marking a significant step towards integrating digital assets into mainstream financial services.

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Bryan Yanzon

Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.