Thailand plans to block unauthorized crypto platforms from local users

Thailand's Securities and Exchange Commission has announced that it plans to block local access to unauthorized cryptocurrency platforms, and has asked local investors to move out their funds from such platforms.

Following a meeting on April 19 with a government committee on preventing technology-related crimes, the SEC was ordered to submit information on locally unauthorized digital asset service providers to the Ministry of Digital Economy and Society. The ministry is expected to ban access to the platforms after court approval, the statement said.

While the SEC did not provide the details of what may disqualify a platform from being legitimate, it provided a website that could help investors verify a business operator.

The Thai regulator said that blocking access may help law enforcement to prevent criminals from using such platforms for wrongdoing, such as money laundering. It added that this action is similar to those taken by the authorities in India and the Philippines.  

The government agency has previously taken legal action against crypto exchanges Binance and Bybit for operating without permission in Thailand, according to the SEC.

“The SEC warns people and investors to be cautious about using unauthorized digital asset operators because they do not receive legal protection, and there is also a risk of fraud and money laundering,” the statement said.

This latest development follows several crypto-positive moves Thai authorities made this year, which include extending exemption from 7% value-added tax on crypto trading gains, and allowing local institutions to invest in U.S. spot bitcoin exchange-traded funds.