The latest crackdown by Thailand's Economic Crime Suppression Division (ECSD) targeted 5 companies related to cryptocurrency, with total annual revenue reaching up to 29 million USD. This campaign led to the arrest of 11 people and is the latest move in efforts to tighten regulation of the crypto sector in this Southeast Asian country.
How Was the Crackdown Conducted?
The ECSD carried out simultaneous raids on 5 companies suspected of illegal financial activities related to cryptocurrency. While there is no detailed information about the identities of these companies, Thai officials stated that these enterprises have transaction volumes reaching millions of USD each year.
In addition, the Thai Securities and Exchange Commission (SEC Thailand) is also actively preventing unlicensed cryptocurrency exchanges, such as Bybit and several others last year. However, experts believe that this move is not aimed at completely 'suppressing' crypto but is just part of the process of adjusting and managing the market.
Crypto in Thailand: Developing While Being Controlled
Although the Thai government is tightening regulations on crypto companies, the reality is that the cryptocurrency market in the country is still growing strongly. According to a report by Chainalysis, Thailand ranks 16th in the world for cryptocurrency adoption index in 2024, with crypto transaction values reaching 50 billion USD from July 2023 to July 2024.
In addition, the Thai SEC is updating regulations related to crypto investment to attract legitimate investment funds into this market. One notable move is that the SEC is considering approving a spot Bitcoin ETF and reviewing the management of stablecoins. This shows that Thailand does not intend to completely ban crypto but is looking to control and integrate it into the financial system.
Where Is Thailand on the Southeast Asian Crypto Map?
With the current policy, Thailand is at an intermediate level compared to countries in the Southeast Asian region. According to crypto expert Lian, the country has a less open approach than Singapore but is not as prohibitive as China.
This means that:
The Thai government does not encourage but also does not completely prohibit crypto.
Exchanges and companies related to crypto need to have valid licenses if they want to operate.
The tightening of controls is to combat fraud and illegal finance rather than to completely eliminate this industry.
What Will the Future of Crypto in Thailand Look Like?
Although this crackdown may cause concern within the crypto community, Thailand's continued research on Bitcoin ETFs and stablecoins indicates that the government is still keeping the door open for crypto development. This could help Thailand become one of the countries with the most reasonable crypto policies in Southeast Asia, fostering innovation while ensuring financial safety.
Could this be a stepping stone for Thailand to develop into a legitimate crypto hub in the region? Or is it just part of a series of tighter control measures? Time will tell.