Thailand Authorities Target Crypto Peer-to-Peer (P2P) Trading Regulations to Combat Online Fraud

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Thai authorities aim to curb online fraud by focusing on peer-to-peer (P2P) transactions. During a gathering of various government bodies, there was a consensus to control the trading of cryptocurrencies and purchasing digital assets through P2P platforms, with the primary objective of shielding the public from potential financial harm.

Thailand to Prevent Scammers from Cleaning Money via P2P Trades

At the event, we had attendees from various organizations present, such as the Defense Ministry, Thai SEC, Royal Thai Police, Bank of Thailand, Department of Special Investigation, NBTC, Thai Bankers’ Association, Interior Ministry, NECTEC, and DSI.

Prasert Jantararuangthong, the Thai Minister for Digital Economy and Society, presided over the gathering of attendees. This assembly was convened in response to a directive issued by Prime Minister Srettha Thavisin. The prime minister had instructed relevant agencies to make public their strategies within thirty days, aimed at combating the escalating issue of online fraud.

In an article published by The Bangkok Post, it is reported that crooks involved in internet fraud transfer their ill-gotten gains through cryptocurrency exchanges and peer-to-peer trading platforms. This method helps them conceal their identity and transactions, making it challenging for law enforcement to track and apprehend the criminals.

Approximately 80% of the 100 million baht ($2.7 million) in daily fraud transactions reportedly flow through peer-to-peer (P2P) channels in Thailand, as stated by Prasert’s ministry. Criminals are believed to find it convenient to launder their ill-gotten gains through these unregulated channels. In response, the Minister has assigned the Securities and Exchange Commission (SEC) with the responsibility of devising regulations for P2P trades in order to curb money laundering activities.

No VAT for Crypto in Thailand

Based on the SEC’s report, approximately 2 million Thai individuals hold crypto accounts. At present, regulations primarily aim to control crypto trading, with a particular focus on cracking down on unauthorized exchange operations. The next step is to expand regulatory oversight to include peer-to-peer (P2P) trading, in line with current initiatives. Prasert, however, emphasizes that legally registered platforms will not be subjected to this increased scrutiny.

Translation: Regulating peer-to-peer platforms won’t influence cryptocurrency traders using approved exchanges.

If the SEC fails to adjust the current regulations, the Minister intends to propose a new regulatory framework to the Prime Minister. This scheme aims to address issues such as peer-to-peer trading, as well as combat fraudulent activities on the internet and phone scams from call centers.

Thailand is making efforts to transform the country into a hub for digital assets. In February, the Ministry of Finance announced that cryptocurrency trading would no longer be subject to value-added tax (VAT). This decision was made to encourage the use of digital assets and boost the digital economy. The Finance Minister’s secretary, Paopoom Rojanasakul, revealed that the ultimate goal is to promote widespread adoption of crypto. Previously, a 7% tax applied to the crypto sector, but this tax has been abolished, starting from January 1. Initially, only authorized crypto exchanges were exempted from the tax, but now all brokers and dealers regulated by the Securities and Exchange Commission (SEC) also benefit from this waiver.

The SEC and Finance Ministry are presently revising the 2019 Securities Exchange Act of the country. Their objective is to enhance regulations concerning cryptocurrencies and their investment. To achieve this, they plan to categorize digital investment tokens as securities.

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2024-04-11 16:19