Authorities in Thailand have decided to block access to all cryptocurrency exchanges not authorized to operate in the country. The order is aimed at fighting money laundering and several other online crimes.
At a meeting last week, Mrs. Pornanong Busaratrakul, the Thailand Securities and Exchange Commission's (SEC) Secretary-General, said the resolve begins with the Commission submitting details of unauthorized crypto providers to the Ministry of Digital Economy and Society, which will then block access to the platforms.
The move targets illegal platforms, not the entire country's crypto sector. Citizens should still gain access to authorized platforms, including cryptocurrency exchanges, merchants providing goods and services, and Bitcoin gambling sites, where players can enjoy the benefits of merging the casino industry with the perks of blockchain technology.
As part of the announcement, the Thai SEC has now asked customers on these platforms to withdraw their funds as soon as possible, adding that there is no legal recourse for users. A translation of the SEC's publication reads:
"The SEC would like to warn the public and investors to be careful of using services with unauthorized digital asset business operators because they will not be protected by law. There is also a risk of being deceived and [unknowingly facilitating] money laundering."
The SEC's news release also encourages investors to check the Commission's list of licensed business operators before depositing funds.
Thailand's decision to create stricter crypto regulations follows similar moves by authorities in other Southeast Asian nations. For instance, India's Financial Intelligence Unit (FIU), a part of the Ministry of Finance, issued a noncompliance notice to several crypto exchanges. Affected establishments were Kraken, Binance, KuCoin, MEXC Global, Bitfinex, Bittrex, Gate.io, and Bitstamp. The government asked the exchanges to comply with local Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations within 12 days. Weeks later, the exchanges' apps were unavailable on Apple's App Store and Google's Play Store in India. The government also banned the exchange's URLs.
The order came as a shock to several users of cryptocurrency exchanges in the country, especially those who camped with offshore exchanges to avoid the heavy 30% tax the Indian government imposed on crypto trading profits.
There are calls for the Indian government to focus on misconduct common among local exchanges. For instance, Siddharth Sogani, the CEO of blockchain analytics firm Crebaco Global, told Cointelegraph that domestic exchanges require regulatory oversight. According to Sogani, the government's action against foreign platforms is a good way to prevent Indian traders from evading tax. However, he believes it is "hypocritical for the government to worry about foreign exchanges before setting clear regulations for Indian exchanges." The CEO buttressed his point by pointing to cases where local exchanges have prevented users from withdrawing their funds.
However, Rajagopal Menon, the vice president of Indian exchange WazirX, praised the action. Menon believes it was long overdue because the government could not earn tax revenue, users had no recourse, and local exchanges lost their market share. Interestingly, the law could be positive for crypto-based services like online gambling platforms that allow crypto, especially since they may no longer have to grapple with foreign competition.
Authorities in the Philippines are also cracking down on unauthorized crypto platforms. Last month, the Philippines National Telecommunications Commission (NTC) began blocking access to websites of cryptocurrency companies offering investment products without the required permits. The Commission had issued an order to internet service providers instructing them to block the websites of OctaFX and MiTrade upon request from the country's Securities and Exchange Commission (SEC).
Photo by Geoff Greenwood on Unsplash
